The Path To Bankruptcy And How To Avoid It

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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, call us at 1-844-962-9200 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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Danny Gottshalk
the service was excellent, Grace Cuffaro and Serena Sklar was very helpful and knowledgeable.
Martin Obrien
Trina was Very pleasant and professional to deal with made the process absolutely easy no stress at all explained everything simplified it down so I could understand it would definitely recommend it
Jordan Clarke
This place is great! Grace answered all my questions, very welcoming and I never felt judged! So far everyone I have dealt with was super polite, thorough and treated me with respect! 10/10 recommend!
Praise_Hymn P
They are very accommodating and very respectful. They do very professional and make sure your worries are being addressed. Excellent job Samycha thanks for the help.
Arci Olvez
Very helpful with all the inquiries and satisfied with their service!. Great company to work work with.
Sharon Baltzer
Treated very well. They showed me a great deal of respect. Felt a load had been taken off my shoulders. Would highly recommend.
Ken Burgess
Your staff was all very helpful and kind. They did not make you feel like a lesser person. We are so happy we went to see you to get us out of debt.
Lawrence Wolfe
My experience working with Trina and then the rest of the team was great. They listened to all my concerns and addressed them.
Robert Bartlewski
Great company with amazing experience. Satisfaction guaranteed. All information provided from experts help understand whole processes.
Ken Toolsieram
5 Star Trustees with alot experience. Answer all my questions needed.
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