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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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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