Steve: Unsecured Debt Bankruptcy

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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, 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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Very knowledgeable, helpful and fast service
Anthony Mcfeat
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I am so delighted to have found this company. They are the best. Everyone in the office is very nice never to busy to assist you. Thank you David Sklar and Shirley and associates for being you. 😊🌺😊
Deborah
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Trina was amazing and quick. No judgement was made and they all made me feel I made the right decision. Would highly recommend them
Crystal Minaker
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Trina was very easy to work with. Any questions I had were answered promptly. What seemed like a complicated process was explained in a clear manner that wasn't at all intimidating. It made for a more comfortable experience during a turbulent time.
Eldon Aubie
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Jackie is very professional...I would recommend David Sklar to anybody especially knowing how understanding they are.
Kimberley Lyder-Niles
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I had Shirley and Kim take care of my finances. From the very first moment I spoke with Shirley I could sense how caring, professional and patient she was. She was also very understanding with my lack of financial knowledge and never made me feel dumb as some other companies have.Her and Kim were always very quick to respond to emails, always available if I called and answered my abundance of questions in such detail that I now believe I have a thorough understanding of how finances work. I am hopeful about my fresh financial start and very grateful I had the privilege of meeting and working with these two beautiful women.I also spoke briefly with Richard over zoom and he to was extremely friendly, patient and made sure I was well taken care of.I could not recommend David Sklar and Associates more. Thank you again.
Shayleen Muzi
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Good professional team! Jennifer is the best, helped me through everything and answered all my questions. Made the process easy! Would recommend Jennifer and the team at David Skylar.
gary round
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Christine and her team are amazing and professionals. I called for help and she responded right away to help me.thank you and I really appreciated for everything you do.
Marcelina Sunas
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Thank you so much for the helpYou took away the most stressful things in our lives which was our dept you guys are amazing and would recommend you to everyone
Kaitlyne Sunas
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The staff here are fantastic (Cori handled my visit) and are willing to go above and beyond to help people who need help, I recommend them 100% for people who are looking to move on in good standing.
Vito De
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