Will Your Investments Survive Through Serious Debt?

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The living costs in Toronto are high, the number of Canadians experiencing everyday financial stress is high, and higher interest rates are pushing more and more Canadians to seek serious forms of debt relief. It’s normal to have some debt, but if you’re regularly missing payments, don’t know the extent of your financial situation, or are using lines of credit to pay off bills, then it’s time to confront the reality of your financial situation.

Many people worry that taking a measured approach like bankruptcy or filing a for a consumer proposal with a Licensed Insolvency Trustee (formerly known as a bankruptcy trustee) means they’ll “lose everything,” but this isn’t the case. Some of your assets are protected when you take mediated steps to get out of serious debt. With the guidance of a bankruptcy trustee at David Sklar & Associates, you can consider what the best path is for you, your debt, and your assets.

equity investments

How Do Consumer Proposals Affect Your Assets?

When you file a consumer proposal with a bankruptcy trustee, you are essentially making an agreement with your creditors that boils down to paying back a portion of the debt at a fixed, regular rate. You do need to have a steady source of income to choose this path of debt relief, but for many, a consumer proposal is a more desirable option to getting out of debt than filing for bankruptcy.

In a consumer proposal, the debtor is normally able to keep all of their assets including their homes and cars, they just have to continue making secure loan payments for those assets (i.e., to your mortgage lender or auto lender). If you have an investment like an RRSP or a TFSA, you get to keep that. Any amounts in your RRSP of TFSA stay as they are, which isn’t always the case when it comes to bankruptcy.

That’s why for many, a consumer proposal is a better way to protect your assets from creditors than filing for bankruptcy. If you are individual whose debts do not exceed $250,000 (not including the mortgage of your principal residence), then call us to learn about consumer proposal options — it could be the best way for you to get out of debt.

Bankruptcy

When you file for personal bankruptcy, the rules are a little bit different when it comes to your assets. RRSP accounts are largely exempt from seizure by creditors excluding any contributions you made in the 12-month period immediately prior to filing.

TFSAs and RESPs are not exempt from seizure by creditors and if during bankruptcy you suddenly earn or receive any assets that are over the amount declared during bankruptcy, then the amount that needs to be repaid may increase as well as the length of time in bankruptcy.

Get Help

That’s what a bankruptcy trustee can do for you, they can educate you on the differences between bankruptcy and consumer proposals and guide you towards the best form of debt relief. With the rise of interest rates, more and more Canadians are seeking debt relief, and there are people to help. Don’t delay the path to financial stability, partner with a bankruptcy trustee today.

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
1701299046
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
1701263894
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
1701222756
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
1701134421
Jackie is very professional...I would recommend David Sklar to anybody especially knowing how understanding they are.
Kimberley Lyder-Niles
1700968057
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
1700875951
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
1700868378
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
1700837681
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
1700833567
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
1700805574
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