Will Your Investments Survive Through Serious Debt?

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 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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Ready to live debt free?

I cannot emphasize enough how thankful I am for Jackie Stanley's help with filing for bankruptcy.All of us dread being put in this position and we have a million questions about the process but trust me Jackie makes it so easy for you that you don't have to do anything yourself!She is very kind and friendly and puts you at ease right away. She emphasizes with you and let's you know it's not your fault.Most importantly when you leave that first meeting you will not believe the load that is taken off your shoulders. You can actually feel it!You are a godsend Jackie and I can't thank you enough!!I hope you are highly valued there as much as you are by me!
Sue Murray
18:45 05 Dec 21
Putting together and executing a Consumer Proposal can be daunting, that is unless you work with Cori Naron at David Sklar & Associates Inc. Cori's advice and support has been instrumental over the past five years. Thank you Cori!!
Barry Kuntz
20:37 01 Dec 21
I’m very happy with the services I received for Jackie Stanley who helped me get my finances in order. It was a quick and easy process & all of my questions were answered.
Amanda Frappier
01:18 19 Nov 21
I have had the privilege of being supported by Jackie at David Sklar Associate. She was very helpful, very professional and very friendly. She gave me the help I need. Thank you Jackie for your help.
Alex Taylor
22:03 17 Nov 21
Got my probe solved, great service
arny raposo
17:02 11 Nov 21
Jackie at Daivid Sklar and Associates is such a pleasure to work with. She explained everything in great detail and is always there when I have a question or concern. She really cares about her clients.
Steve Medica
09:33 10 Nov 21
I filed a proposal with another group, which came in as a referral from one of my brokers. My experience went from ok to bad to worse, due to lack of communication and education on the process I was to embark on. I worked with Cori Naron in the past, and I came to her now for help on literally doing the work that the other group should have done. Cori stepped in, educated me, advised on rights, responsibilities, how the process works and what potential outcomes may happen. I do not have enough words of recognition and gratitude for what she did - she alleviated stress, anxiety, dead-end thoughts and she made me live again. Congrats to DSklar for hiring her and retaining such talent.
Giani Kokolakis
18:45 25 Oct 21
Very professional service. Before contacting David Sklar & Associates i contacted bunch of other firms they seemed fishy. After I spoke with Jason Sklar at Hamilton Office I discovered professionalism with hope. I was explained every step of my situation with solution professionally. Thank you David Sklar & Associates.
Wajay Awan
07:29 12 Oct 21
I met David a few months ago and i am glad I did. He has helped me all the way through my bankruptcy with good advice and explained every step of the process. David is a very down to earth and very professional. Anytime I've had a question I was able to reach out to David by phone or email and he always got back to me. If your struggling with your bills and need a way to get help, I strongly recommend David Sklar &Associates to help you. My experience with them on 1-5scale would be a 5;; My life is so much better now, thanks to David Sklar.
Bruce Locke
16:13 08 Oct 21
I have had the privilege of being supported by Jackie S, at David Sklar n Associate.She was helpful, professional and friendly. I was able to get the help I needed at a difficult time in my life. I would recommend anyone who needs support with working out their debts to ask for Jackie, she will be waiting to assist however she can to help you through your debts. She works with a team who is always ready and responsive.Thank you Jackie and your team:)
Denise Simpson
15:17 09 Sep 21
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