Steve: Unsecured Debt Bankruptcy

Steve: Second Chance at a Fresh Start

Steve (not his real name) was a self-described ‘tech-geek’ in his late 20s who was just beginning to find his way in a career when he first came to David Sklar & Associates.

At 25, after a series of low-paying, dead-end jobs, Steve landed a good job in the inventory parts department of a major company in Kitchener. He did very well, was quickly promoted and his salary increased to $32,000 per year. Unfortunately, his spending increased even more – and within two years, he was heavily in debt to multiple credit card companies, banks, and his cell phone provider. Steve was laid-back about his debts until his manager expressed concern about the numerous collection calls he was receiving at work.

Motivated by the fear of losing his job, and knowing that his debt was beyond his control, Steve went to a Bankruptcy Trustee to see what could be done. After reviewing his options, Steve decided to file a Consumer Proposal. His Proposal was accepted, and he began repaying his substantially reduced debt on a five-year plan. With the Proposal in place, the collection calls stopped.

During the sixth month of his Proposal, Steve lost his job when his company went out of business. Unable to pay, he missed three Proposal payments, his Proposal went into default, the stay of proceedings was lifted, and his creditors restarted collection efforts.

Hoping to find work, Steve moved to the Greater Toronto Area, where he found a job in the parts department of a computer wholesaler. This was the ‘perfect’ level-entry job, combining Steve’s love of all things tech and his parts experience. Steve was optimistic about his future with the company until he got his first collection call at his new job.

~~~ ~~

When Steve came to David Sklar & Associates, he was understandably concerned. To help him explore all of his options, his Estate Administrator, Richard Sklar carefully reviewed his situation with him:

4 Credit Cards Debt $14,500
2 Unsecured Bank Loans $4,500
Payday Loan $1,250
Old Cell Phone Bills $3,500
Overdraft $1,750
Total Unsecured Debt $25,500

 

Steve had no secured debt, did not have a vehicle, and did not own a home or have other major assets. His net take home pay was $1,950 per month and he had no dependents.

While he was hopeful about his new job, after discussing the situation with Richard, Steve realized that he did not earn enough, or have enough job stability, to reinstate his Proposal.

Since Steve had no significant surplus income, he would qualify for a 9 month Bankruptcy, with the minimum monthly payments of $200 per month.

After reviewing his options, Steve decided to file for Bankruptcy. Working with Richard, he completed a budget that he would be able to stay on. His Bankruptcy was filed by David Sklar & Associates, and all collection efforts stopped.

During his Bankruptcy, Steve was required to submit monthly budget reports. As well, he was required to attend two financial counselling sessions. During those sessions, Steve learned the techniques for money management that would enable him to not only stay out of future trouble, but to build a better life for himself.

At the completion of his Bankruptcy, Steve was released (discharged) from all the unsecured debt covered by the Bankruptcy. He had earned his ‘fresh start’, had the tools to stay out of debt, and was determination to succeed.

To protect our client’s 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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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
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
My experience with Ashley Carter at David Sklar and Associates was very pleasant and professional. The process was made easy by Ashley with her help in answering my questions and concerns.
Alex Lamparter
13:07 03 Sep 21
Ashley she was extremely helpful,super friendly and understanding my situation. I am very please for the service I received and I will recommend this Company to anyone in need of consolidating. Thanks so so much.
Nicole Minister
17:43 02 Sep 21
I finally pulled the trigger and seek help from this team. I tried to pay my debt in the way it should be until the pandemic made it even worst and couldn't keep up with my payments anymore. Jackie is an amazing person, I told her the problem, she gave me the solution and gave me a variety of options and walked me through the process. That simple. Thank you so much.
rr 28
12:44 21 Aug 21
Dealing with Jackie made the process so much more comfortable. From my first phone call with her I never felt like I was being looked down on. Jackie made this as easy as being in this situation could be.
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18:09 13 Aug 21
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