The Path To Bankruptcy And How To Avoid It

In the last decade, over one million Canadians have declared insolvency. Canadian households are facing ever-higher debt loads and not just because housing prices have been pushing mortgages ever higher. Younger Canadians are graduating from school with more student loans while Canadian families are taking on more and more unsecured bank loans, lines of credit, and payday loans, often to pay for school, make down payments, or cover expenses from job loss.

There are many paths to bankruptcy and while some are avoidable, some are not:

#1 Job Loss – Losing your job or your business is one of the leading causes of personal insolvency. You may think that it will only take a few weeks to find new employment, but it can wind up taking months or even longer to find a job in a similar pay grade. In the interim, Canadians often rely on payday loans and lines of credit to cover living expenses.

#2 Medical Emergency – Even though Canadians largely avoid the steep medical costs many Americans face in a medical emergency, personal injury and disease can be financially devastating, from medication costs and physiotherapy to the inability to work. As Canadians focus on their recovery, they’re often unable to work, relying on debt to live and letting utility bills go unpaid.

#3 Poor Credit Use – While job loss and medical injury are impossible to predict, even careful savers can wind up in debt if they go on too long. Poor credit use is the most easily avoidable path to bankruptcy and credit counselling at David Sklar & Associates can help you adjust your habits and budget appropriately. Interest payments can make credit spiral out of control and beyond your means to pay, whether it was a bad car loan or excessive credit card use. If you see your credit card bills growing with no way to stop them, give us a call today.

At David Sklar & Associates, we’re not here to judge how you got into your financial situation, we’re here to help you get out of it. A Licensed Insolvency Trustee should be the first place to go for help if you’re thinking about bankruptcy. Avoid turning to debt consolidation loans that can simply replace your debts with yet another high-interest loan. Licensed Insolvency Trustees can help you settle your debts, and you may not even need to declare bankruptcy if you seek help early enough.

Even if you’re insolvent, you can still avoid declaring bankruptcy and protect your assets by filing for a Consumer Proposal. Consumer Proposals are the first course of action we try to take at David Sklar & Associates. In a successful Consumer Proposal, we come up with a manageable monthly amount that you can pay back to your creditors for up to five years. If they accept, which creditors typically do, you will only have a portion of your debt to pay while interest stops accumulating. They’re not as widely known as bankruptcies, having only become possible since the 1990s, but today they represent nearly half of all insolvencies. You don’t have to declare bankruptcy, but the sooner you get help the better your chances.

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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Ready to live debt free?

I cannot emphasize enough how thankful I am for Jackie Stanley's help with filing for bankruptcy.All of us dread being put in this position and we have a million questions about the process but trust me Jackie makes it so easy for you that you don't have to do anything yourself!She is very kind and friendly and puts you at ease right away. She emphasizes with you and let's you know it's not your fault.Most importantly when you leave that first meeting you will not believe the load that is taken off your shoulders. You can actually feel it!You are a godsend Jackie and I can't thank you enough!!I hope you are highly valued there as much as you are by me!
Sue Murray
18:45 05 Dec 21
Putting together and executing a Consumer Proposal can be daunting, that is unless you work with Cori Naron at David Sklar & Associates Inc. Cori's advice and support has been instrumental over the past five years. Thank you Cori!!
Barry Kuntz
20:37 01 Dec 21
I’m very happy with the services I received for Jackie Stanley who helped me get my finances in order. It was a quick and easy process & all of my questions were answered.
Amanda Frappier
01:18 19 Nov 21
I have had the privilege of being supported by Jackie at David Sklar Associate. She was very helpful, very professional and very friendly. She gave me the help I need. Thank you Jackie for your help.
Alex Taylor
22:03 17 Nov 21
Got my probe solved, great service
arny raposo
17:02 11 Nov 21
Jackie at Daivid Sklar and Associates is such a pleasure to work with. She explained everything in great detail and is always there when I have a question or concern. She really cares about her clients.
Steve Medica
09:33 10 Nov 21
I filed a proposal with another group, which came in as a referral from one of my brokers. My experience went from ok to bad to worse, due to lack of communication and education on the process I was to embark on. I worked with Cori Naron in the past, and I came to her now for help on literally doing the work that the other group should have done. Cori stepped in, educated me, advised on rights, responsibilities, how the process works and what potential outcomes may happen. I do not have enough words of recognition and gratitude for what she did - she alleviated stress, anxiety, dead-end thoughts and she made me live again. Congrats to DSklar for hiring her and retaining such talent.
Giani Kokolakis
18:45 25 Oct 21
Very professional service. Before contacting David Sklar & Associates i contacted bunch of other firms they seemed fishy. After I spoke with Jason Sklar at Hamilton Office I discovered professionalism with hope. I was explained every step of my situation with solution professionally. Thank you David Sklar & Associates.
Wajay Awan
07:29 12 Oct 21
I met David a few months ago and i am glad I did. He has helped me all the way through my bankruptcy with good advice and explained every step of the process. David is a very down to earth and very professional. Anytime I've had a question I was able to reach out to David by phone or email and he always got back to me. If your struggling with your bills and need a way to get help, I strongly recommend David Sklar &Associates to help you. My experience with them on 1-5scale would be a 5;; My life is so much better now, thanks to David Sklar.
Bruce Locke
16:13 08 Oct 21
I have had the privilege of being supported by Jackie S, at David Sklar n Associate.She was helpful, professional and friendly. I was able to get the help I needed at a difficult time in my life. I would recommend anyone who needs support with working out their debts to ask for Jackie, she will be waiting to assist however she can to help you through your debts. She works with a team who is always ready and responsive.Thank you Jackie and your team:)
Denise Simpson
15:17 09 Sep 21
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