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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Very professional and fast service! Also, personable!.. they don't treat you like a number, but like a person.From the time I first contacted them, until I was set up there has been not more than 7 days.I dealt with Jackie, she was great!
Jelena Petrovic
18:06 20 Jun 21
I had a great experience with Rhoda at the Mississauga location. Extremely knowledgeable and helpful, she made me feel confident I had made the right choice contacting David Sklar and co. Highly recommend.
Maria Curbelo
19:59 18 Jun 21
I would just like to say thank you to David Sklar & associates for helping me out in this difficult time I was in way over my head, I was introduced to Jackie Stanley, at that moment things got better the calls stop. Jackie was so professional helpful, trusting answered all my calls all my Text, and emails professionally and respectful!! I can’t believe it, and now I’m gonna build my credit rating back up and have my life back Thank You, Jackie Stanley at David Sklar& associates, for doing an outstanding Job!!!!
Mark Simmonds
21:50 16 Jun 21
I am not very good at putting words together especially when your speechless for all the help from such a friendly happy non judgemental team. From being financially stressed and depression hitting all at once I connected with Jackie Stanley💯❤❤ from David Sklar team in a whole other level,she is an absolutely joy to deal with and very informative let me know there is light at the end of the tunnel.. despite my struggle the amazing lady Jackie Stanley was able to put a smile on my face and make me laugh super happy and grateful 🙏I was able to connect with her from David Sklar &Associates team I 💯 percent recommend her (Jackie Stanley) and will continue to recommend her. To any one looking to get out of debt or have any questions belive me when I say you will not be disappointed with Jackie she's such a great person and I'm lucky to have been able to recieve the help and guidance from such a wonderful person and you will be also...look no further no where but up from here ...Thank you So so much Jackie much appreciated
Richelle Barriault
17:57 16 Jun 21
Reached out to Jackie, who was very cordial and professional. Highly recommended.
The Lit Lion
16:54 16 Jun 21
I must admit that I am so glad I called! I spoke to Rhoda Lewis who right away made me feel at ease. She's so caring and supportive I highly recommend her. Thanks to her my life is now on track! Thank you David Skylar & Associates Inc!
Grace Muller
17:55 25 May 21
Very professional and courteous. Jackie was very helpful and understanding. She was happy to answer any questions I had and we were able to process everything quickly with no hassle.
Nicholas Burnett
17:07 19 May 21
I would say my experience with David Sklar was spectacular, they made it really easy for my through the whole process and now 9 months later my bankruptcy is discharged.i would recommend David Sklar to anyone.
HN
23:00 06 May 21
I had a nagging defaulted student loan that was holding me back. There were a few smaller issues that were compounding. The lockdowns really forced me to look into building back my credit and starting fresh.Ashley at David Sklar & Associates at the Keele and Finch location was a blessing. She was thorough in her explanations and answered any concerns I had. She gave me the options and let me decide what was best. After conferring with her, I decided bankruptcy was the best option. She made the process of filing for bankruptcy easy.There's nothing to be afraid of. Stigma attached to bankruptcy but you can reset if you work hard to make it happen.I highly recommend speaking with Ashley if you have any concerns about debt solutions.
A M
14:39 04 May 21
I highly recommend David Sklar & Associates Inc. They helped me with my finances along with the help of Ashley Carter whom assisted me thoroughly throughout the process of my Consumer Proposal. She is very friendly, professional and updated me occasionally through emails. With her tremendous help, I am very thankful to have accompanied someone like her!
Pilar
21:05 28 Apr 21