Linda: Getting Out of Debt with Bankruptcy

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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, 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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Great experience i was in financial trouble and someone of my friends recommended this company. Cori is a wonderful and welcoming person she did a very good job and came up with a smooth and flexible monthly payment after the reduction. i highly recommend this company. Thank you David sklar and special thanks to Cori.❤️🙏🏻
Jasmine Joseph
22:08 13 Jan 23
Met up with Mr. Jason Sklar to discuss more in person, very thorough and clear. He is very kind and thoughtful, I will be referring anyone with the same situation to David Sklar & Associates.
Ariel Domingo
02:33 29 Dec 22
I was a reck talking yo Jason Sklar was easy comfortable he explained everything and put my mind at ease I would recommend the team od sklar to everyone. I have already talked to my ci workers about them
kevin mcweeney
01:13 22 Dec 22
The team at David Sklar & Associates is fantastic.I worked with Jerry whom not only made - what seemed like intimidating process to initiate at first - comfortable.He made everything transparent and took the time to explain the process every step of the way.He was kind, attentive, and professional. Everything was made straightforward and stress free and we found a solution together that worked.Thanks to Jerry and the team.
Jordie Angiolillo
18:22 21 Dec 22
From day one till the end which is today😁 DavidSklar gave me a 5star service and treatment. And I will 100% recommend him and his Associates. This is the best Christmas present ever! Thank you David! More business to come! Merry Christmas and a Happy New Year!!!
barbee diaz
16:37 16 Dec 22
I FOUND DAVID SKLAR & ASSOCIATES BY GOOGLING "BANKRUPTCY" (EARLY NOV. 2021). ON NOV.4, 2021 I HAD A MEETING WITH CORI NARON AT HER OFFICE AT ST CLAIR ANDBATHURST. HER POSITIVE APPROACH TURNED ASTRESSFUL SITUATION INTO A STEP BY STEP UNDERSTANDABLE PROCESSON SEPT. 23, 2022 I OBTAINED MY AUTOMATICDISCHARGE FROM BANKRUPTCY AND MY CERTIFICATE OFDISCHARGE.THANK YOU CORIBRUCE BURGESS
bruce burg
21:35 02 Dec 22
Jerry was wonderful and provided superb service. He is very knowledgeable, trustworthy, and made an intimidating and shame filled time in my life stress free. I hesitated for a long time to take the next step, but Jerry answered all questions, was patient and made the process effortless. I am eternally grateful, and highly recommend Jerry’s services.
M J
18:41 01 Dec 22
Jerry was professional and was easy to deal with
Debbie Asquith
00:09 29 Nov 22
I was quite nervous and a little embarrassed that I needed financial advice. I met with Jerry Janiec and he was very helpful. He made me feel comfortable and explained everything in easy to understand terms so that I understood what my options were. I would recommend David Sklar & Associates for anyone in my position.
Melissa Blackburn
19:53 17 Nov 22
I was fortunate enough to be referred to David Sklar & Associates Inc. by a family member. Now in the10th month of a Consumer Proposal process, I am very impressed with the organization, professionalism and impeccable customer representation that I have experienced. To this effect, I amparticularly thankful to Jerry Janiec and Rhoda Lewis for their excellent work.
Suzanna Vaclavik
12:21 16 Nov 22
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