Linda: Getting Out of Debt with Bankruptcy

Getting Out of Debt: A Toronto Bankruptcy

Linda (not her real name) was 29 when she first came to David Sklar & Associates’ Toronto office – to see if she could get out of debt that had been following her for years.

In her early 20s, Linda had been careless with her finances – and had racked up substantial debts to a wide range of creditors including former landlords, credit card companies, banks, car loan companies, payday loan companies, phone companies, taxes, and more. These unpaid debts and her creditors followed her wherever she went.

By the time she was in her late twenties, her finances were chaos. Added to her financial distress, Linda’s common-law husband (who loved her and their child), was not convinced they could have a future together if she did not get her past debts under control. The collection calls, notices and legal actions were putting an unbearable strain on their relationship.

Although Linda had been able to get a job a few months after the birth of her son – the constant stream of collection calls she was getting at work, was putting her job in jeopardy.

Making A Needed Change

Realizing that she needed help, Linda decided to speak with David Sklar & Associates at their Toronto office.

At her initial meeting with Richard Sklar, Estate Administrator – Linda laid out her problems in detail. She owed $65,000 in unsecured debt to over 35 different creditors. She had $1,500 in bankruptcy-exempt personal effects and furniture; no secured loans; and a monthly net income of $1,600. Several of her creditors had already begun legal action, and there was a garnishee on her salary.

After exploring all of her options with Richard, Linda decided to file for bankruptcy.

Normally, in a bankruptcy, the income of the entire household is taken into account to calculate surplus income. However, as was his right, Linda’s common-law husband refused to disclose his income. This meant that Linda’s surplus income was calculated according to guidelines set down by the Office of the Superintendent of Bankruptcy for non-disclosure situations. It was determined that Linda would be required to pay $200/month into her bankruptcy estate for the 21 months she would be in bankruptcy.

In addition, during her bankruptcy, Linda would be required to submit monthly budgets and paystubs to her bankruptcy trustee and honour the terms of her bankruptcy.

Once the bankruptcy was filed, and her creditors were notified – all their legal actions were stopped. The collection calls and notices were stopped – and the garnishee was removed.

As Richard explained to her – during her mandatory Credit Counselling sessions, there will be a special focus on managing credit. This would be aimed at helping give her the tools she will need to move forward.

Successfully Completing Bankruptcy

Once Linda has successfully completed her bankruptcy, she will have gotten out of debt and earned a ‘fresh start’ to her financial life. In her youth, she did not understand the ramifications of her poor credit choices – now that she is maturing and raising a child – she is trying to correct the past and move forward with a better attitude towards debt and personal responsibility.

 

To protect our clients’ 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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