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.

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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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I was quite nervous and a little embarrassed that I needed financial advice. I met with Jerry Janiec and he was very helpful. He made me feel comfortable and explained everything in easy to understand terms so that I understood what my options were. I would recommend David Sklar & Associates for anyone in my position.
Melissa Blackburn
19:53 17 Nov 22
I was fortunate enough to be referred to David Sklar & Associates Inc. by a family member. Now in the10th month of a Consumer Proposal process, I am very impressed with the organization, professionalism and impeccable customer representation that I have experienced. To this effect, I amparticularly thankful to Jerry Janiec and Rhoda Lewis for their excellent work.
Suzanna Vaclavik
12:21 16 Nov 22
Recently dealt with Christine at David Sklar & Assoc. and worked out a Consumer Proposal to put forth to my creditors for my Credit Card debt. She was very courteous, professional and put me at ease with a proposal that I can afford on a monthly basis, which will eliminate my debit in a reasonable timeframe. I would recommend Christine and this firm in a heartbeat. Very happy with the service and attention I got !!
Patrick Kovanchak
01:59 15 Nov 22
Excellent customer service. Special thanks to Olga for being prompt and helpful. She’s a star. Bibi is helpful as well. Great agency to work with.
Fady Tadros
19:28 14 Nov 22
After seeing your commercial play on CP24, I realized that it addressed all the questions and concerns I had about my financial situation. It all started with my one phone call to your office. I had the extreme pleasure of working with Cori Naron at your St. Clair West office in September 2022. She took the time to explain what my options were knowing that it was a very stressful situation with my debt load. She made me feel at ease with my decision to file a consumer proposal and outlined the benefits to me. She is thorough and her attention to detail is outstanding. While it takes a little while to reap the benefits of making this hard decision, she took the time to reassure me that it was in my best financial interest. Well done David Sklar & Associates for having such an amazing representative at your company and for allowing me to "get a fresh start"!
David
14:31 14 Nov 22
Very highly perfection individual, well executed and greatly knowledgeable in his work, which guided me me the right decisions making opportunities. Thank you.Sincerely, Peter Romasz
Peter Romasz
20:18 13 Nov 22
Trina Powell was very helpful and made the process very easy. Thanks again for all your help.
Jennifer Hager
17:59 06 Nov 22
Jerry is a caring, trustful, knowledgeable and competent Sklar associate. He understood my needs and quickly went to work on my behalf. Ever indebted to David Sklar and Associates and especially to Jerry for his professionalism and caring approach.
David Craig
19:31 31 Oct 22
Jerry Janiec is very knowledgeable and very helpful everything he explained to me was straightforward and very easy to understand. I'm very pleased to be working with Jerry to become debt free. I will definitely be recommending to any friends or colleagues your services.Thank you again for helping me get on the road to be debt free. 5 Stars is well deserved.
Christopher Rakobowchuk
17:41 27 Oct 22
Hi there! I am very glad to met this company, especially Jackie Stanley. Thanks for her great work and help me to save my money! Very appreciable!
Mehri Agil
02:43 26 Oct 22
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