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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So over the past few weeks I’ve had multiple contact with Christine. She was simply amazing. She helped me understand my debt and what options I had available to help relive some of my debt stress that’s affecting my own well being and my family.David Sklar and associates is simply put an amazing company and I highly recommend them to absolutely anybody needing help!
Adam Bertrand
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Christine Sylver was very helpful to my situation. No question asked, she went above and beyond just to give me the options that I need to solve my problems. She explained and made me understand my options. Thank you Christine! Everything was done in a week. Regards, to Richard Sklar for explaining everything further to me. 😊
Kris
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I was blown away by how kind and empathetic Christine and David were. I came into the process expecting to feel embarrassed, but they were so helpful and unquestionably supportive, they made the whole experience a positive thing. On top of that, Christine found a solution for me that was better than I ever could have imagined. I highly recommend Christine, David, and colleagues to anyone.
Mary M
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Christine Sylver has been very efficient in working with me in all aspects toward developing a very favourable consumer proposal which meets my financial budgeting very nicely. She also exhibited a very positive pro client attitude and was every pleasant to communicate with. Richard Sklar also demonstrated a very positive pro client attitude in explaining in detail all aspects. All great!!
Rob Hultgren
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Dealing with Christine was a real pleasure.She was very understanding professional and knowledgeable she answered all my questions.I left feeling relieved a big burden was lifted from my shoulders
John Horan
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Very happy I got in touch with Jackie! She has been a great help and a pleasure to work with! I highly recommend Jackie if you need help getting out of financial debt.
Hailey Cascagnette
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I had the pleasure of working with Jackie and she made the experience very easy and was very honest which I appreciated as I was extremely nervous to go through with the process. Any questions or concerns I've had after our meetings were answered no problems and although it's been a few weeks I can honestly say I've never felt so stress-free. Very thankful for Jackie.
Cassandra Arevalo
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Very considerate of how people can sometimes make mistakes and need help to get things back on track. Great team of people. Thanks to Jacqueline for all her help.
Kevin Chase
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My mother told me about this firm because they helped resolve her situation nearly 25 years ago. I had the pleasure of working with Christine Sylver. I should’ve done this years ago but I am where I am and it is what it is. Extremely courteous, professional and understanding. I hope to never need their services again but they would be my first call! A+
Patrick Martel
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Jerry was extremely thorough and ensured that as a client, I understood all of my options and their repercussions. He offered his professional advice best suited for my situation and he is amazing at his work. Thank you Jerry! :)
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