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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They seem to have given me back control over my earnings.
Theophilus Hove (Tad)
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Very professional and prompt service . Jackie made my experience very easy . Thank You
Frederick Kirby
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I can't praise Cori enough from David Sklar & Associates. Cori's acceptance and understanding of the diverse needs and concerns of her clients shines through with zero judgement. She made this process smooth and relieved much of my stress and anxiety around debt. Thank you!
Karen Swan
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My husband worked with Chen Siga, he walked us through our options and then through the process of getting everything done. Everyone we dealt with was very helpful. Overall a wonder experience, we are so glad we contacted them and got the help we needed.
Amanda Thomas
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I have been surviving on paycheck-to-paycheck basis and could not go any further because the lending interests just accumulated beyond what I can afford. Fortunately, a good friend recommended Grace Cuffaro from David Sklar & Assoc. and I finally got to settle my financial obligations in a reasonable way. Don't go anywhere else; ignore those financial brokers and social media ads who just want more money from you - go directly to the people who can really save you from drowning in debt.
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I recently had the privilege of working with Trina at David Sklar & Associates, and I cannot praise her enough. Trina’s commitment to her clients goes above and beyond the norm. Here’s why she stands out:Incredible Knowledge: Trina is well-informed and deeply understands her job. Her expertise shines through as she navigates complex processes effortlessly.Client-Centric Approach: Trina doesn’t just follow procedures; she genuinely cares about her clients. She takes the time to listen, empathize, and tailor solutions to their unique situations.Clear Communication: Explaining financial matters can be daunting, but Trina excels at breaking down each step of the process. Her clarity and patience make even the most intricate details understandable.Availability and Accommodation: Trina’s dedication extends beyond office hours. She accommodates last-minute changes and ensures her clients feel supported throughout their journey.In summary, Trina is a gem in the world of customer service. If you’re seeking debt resolution, don’t hesitate to reach out to David Sklar & Associates—and ask for Trina. You’ll be in capable, caring hands.Thank you, Trina, for making a difference!
Darren Augustin
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Jerry Janiec is very helpful and professional. Thank you.
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Unbelievable people who just want to help and I'm thankful
David Siria
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Jackie is awesome!Thank you for pointing me in the right direction.
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Professional, knowledgeable and people oriented. Unfortunately for me, I had to ask for their assistance a few time and never regret about their service. 5 out of 5. Highly recommended.
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