Erica: Personal Bankruptcy in Mississauga

‘Erica’ a Case History: Personal Bankruptcy in Mississauga

Since leaving university in 1993, ‘Erica’ (not her real name) had worked as a civil engineer. She had progressed through two Mississauga companies, and finally decided to set up her own consulting company in 2000.

At first, her company (a sole proprietorship) had done very well. However, by 2002 her business had dropped off to the point it was no longer profitable.

Too embarrassed to ask for help, and convinced she could turn it around, Erica poured her savings into the company. When her savings ran out, she began to use credit. After several months, her credit cards were maxed out. She then got a consolidation loan from her bank and paid off the cards, but she continued to use the cards to fund the business.

By 2004, Erika finally accepted the fact that her business was not going to succeed. Realizing that she was too far in debt to ever be able to pay it off – she decided to contact David Sklar & Associates (DSAI).

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During her initial meeting at DSAI, Erica reviewed her financial situation with Rhoda Lewis, Certified Insolvency Counsellor and Estate Administrator. During the meeting, it was disclosed that Erica’s financial situation was as follows:

Debts
     2 Credit Cards $28,500
     Unsecured Bank Consolidation Loan $34,000
     Canada Revenue Agency (Personal Taxes and GST) $22,900
     2 Other Unsecured Loans $750
     Total Unsecured Debts: $86,150
Assets
     RRSP $3,500
Income: None

 

After careful consideration, Erica decided to file for personal bankruptcy.

After closing her company, Erica was unable to find a job. Her family was supporting her during this time and took care of her living expenses. Although Erica was able to find employment during her bankruptcy, it was only part-time and did not result in her earning surplus income.

Because she had no surplus income, and this was her first bankruptcy, Erica’s bankruptcy ran for 9 months, during which time she paid the costs of administration only.

In 2008, the Bankruptcy and Insolvency Act was changed to exempt RRSP’s from Bankruptcy in most cases. While contributions made in the 12 months prior to the bankruptcy can be clawed back for the creditors – the rest of the RRSP may be exempt from Bankruptcy. However, Erica’s bankruptcy was filled in 2004 and her RRSP was designated for disbursal to her creditors. The company holding the RRSP was experiencing legal issues at the time of Erica’s bankruptcy and her RRSP was not available for disbursal.

At the end of 9 months, Erica was discharged from her debts. Several months after completing her bankruptcy, Erica found a full-time job and began to rebuild her life.

In 2009, the legal issues around Erica’s RRSP were resolved and the funds from her RRSP were distributed to her creditors by DSAI.

To protect our client’s privacy, aspects of this case study have been altered.

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt and live in the Toronto area, call us at 416-498-9200 to book a FREE, confidential appointment. We will review your financial situation in detail and discuss all of your options with you. Alternatively, you can fill out the form below and our team will reach out to you. 

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The best decision I've made was to contact David Sklar & Associates, they are experts in this matters and also have dedicated Licensed Counsellors that provide the best customer support, like Rhoda Lewis, who I highly recommend. She worked tirelessly on my case, explaining ever detail to me willingly. She demonstrates a true interest in her clients. I appreciate how she patiently walked me through what to do, step by step. I now have control over my finances, as a result my life is much more peaceful and I can focus on what matters. Thank you!
Nilda H.
20:18 16 Jun 22
Very helpful and friendly! I am more than satisfied with my experience here. And more than happy with the outcome! Would definitely recommend .
Peggy Bulger
15:10 14 Jun 22
Jerry at David SKLAR helped me thoroughly understand my options and made me feel at ease. If you are looking at this type of service/help, I 100% recommend you give them a call.
Colleen H
12:50 14 Jun 22
Rhoda is a wonderful person, She help me and guided me throughout the process. I couldn’t do it without her support and expertise. Now I can start fresh and full of hope of a better life ahead of me.
ariezel erandio
21:33 06 Jun 22
The service I recieved from David Sklar and Associates was great. I was able to meet with Christin Sylver. She is kind, understanding and, professional. She was able to answer all the quesions that I had regarding my debt. At the end of our meetings, I felt that there is a heavy burden lifted from my shoulders. I recommend Chistine to anyone who is looking into debt relief.
Aliya H
12:11 04 Jun 22
Jerry is a very patient person, he answered all my questions and made this experience so smooth and easy for me. I was not sure what to expect but dealing with him made me feel so much better. He sure knows what he is doing and how to put people at ease for sure (should have done this long ago). I recommend him to anyone I am so glad I had him on my side and now to do my part. Thanks Jerry ur greatPattie
Patty Murphy
21:34 18 May 22
Rhoda Lewis helped me achieve a fresh start two and half years ago! She was very professional with a very warm, caring personality! I emailed her today with a question and she responded quickly. She's great at her chosen profession!!
Debbie Livingston
01:24 11 May 22
Nothing but good things to say about Jackie. She was so nice and so understand and everything was so quick and easy. In a matter of a week, there was the solution that I never thought was possible. Thank you so very much for everything that you have done. ❤️❤️❤️
Cassandra Keenan
21:05 10 May 22
I was in a lot of debt and stress, Jackie Stanley with David Sklar & Associates was very professional, and extremely helpful with getting out of debt. I should of did this sooner, they take the all the weight and stress of a persons shoulders, amazing team at David Sklar & Associates!!
Hubert Z
03:08 10 May 22
Jackie helped me out during a really tough time and she made the entire process very easy and painless. I highly recommend reaching out to her if you find yourself in any financial trouble. You won’t be disappointed!
prettylush 13
02:42 10 May 22
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