
Stopping Aggressive Bill Collectors
Paul (not his real name) was a successful computer hardware engineer working at a leading technology company for over ten years. Earning over $85,000 per year, Paul was able to provide the “good life” in Toronto for his wife Nancy (not her real name) and their three children with a nice home, organized sports for the kids, frequent family holidays, and Nancy’s ability to be a stay-at-home Mom.
Unfortunately, Paul’s company shut down when a prolonged drop in the market for its specialized products pushed it into bankruptcy. Due to his specialization and an industry-wide glut of professionals with similar qualifications, it took Paul nearly two years to find work.


His new job paid less than half of what he earned in his old career. But it allowed him to move forward and increase his income in the future.
During the two years that Paul was out of work, Nancy was able to find a part-time job in a nearby daycare – but their income was still far below their needs. As a result, they relied on credit to pay for their household expenses.
By the time Paul began his new job, they had run up their six credit cards to $32,000 and maxed out their bank line of credit at $38,000.
To make matters worse, Paul could not make payments on several credit cards, resulting in a judgment for garnishment (aka garnishee) put on his wages. Creditors began calling him at work so frequently that his manager complained about the calls. In near panic mode, Paul realized that if he didn’t take action to fix his financial problems, his performance at work would deteriorate, and he might lose his new job.
How David Sklar & Associates were able to help Paul and Nancy find a way out of debt
When Paul and Nancy came to David Sklar & Associates, they had the following debts:
Credit Cards | $32,000 |
Line of Credit | $38,000 |
Payday Loan | $2,200 |
Total Unsecured Debts | $72,200 |
Their home had a high mortgage and only $6,500 in equity. Their car was nine years old with a low resale value. And their combined net income was $3,850/month (Nancy continued to work part-time, earning a net monthly income of $750 after Paul began his new job).
David and Nancy met with Jason Sklar (their Estate Administrator), who assessed their current financial situation. It was evident that Paul was worried about the effect of the wage garnishment and collection calls in his workplace. Jason discussed their options with them – and they were delighted to learn that a consumer proposal could (if accepted by the unsecured creditors) resolve their debt problems. Filing a consumer proposal would allow them to:
- Keep their home,
- Stop the collection calls
- Lift the wage garnishment
- Repay a portion of their debts
- Avoid bankruptcy

Licensed Debt Counsellor
Paul was also happy to hear that if the household income increased when the proposal was in place, it would not affect or change the terms – the debt payments would remain the same.
Here's how much Paul and Nancy were able to save by filing a consumer proposal
Paul and Nancy worked with their Licensed Insolvency Trustee to create a consumer proposal and a budget for the family. Because they wished to keep their home and the creditors would be looking for a settlement that provided more than they would receive from bankruptcy, they accounted for the $6,500 of home equity in their offer.
Paul and Nancy’s creditors accepted the proposal at the trustee’s recommendation. Under the terms of the agreement, the Toronto couple would repay $39,000 of the current debts of $72,200, a drastic reduction of their previous obligations.
Under the proposal’s terms, Paul and Nancy would make payments of $650 per month for 60 months to David Sklar & Associates for disbursement to their creditors. In total, they were able to eliminate $33,200 of their unsecured debts, a reduction of over 45%.
With the garnishment lifted and the collection calls stopped, Paul could better focus on his new job, free of stress and financial distractions. And within a few months, he received his first salary increase.
One of Paul and Nancy’s duties under the consumer proposal was to attend two financial counselling sessions. Nancy had some uplifting news to share during their first session with Jason. She explained that all three of her children were in their teens when she first started working outside the house, and everyone had managed quite well. So, the whole family had agreed to her working full-time at the daycare to pay down the proposal faster.
Paul expressed his surprise at how agreeable and almost eager the kids had been to help the family through this challenge. Although he would still somewhat that he had not lost his job in the first place – it appeared that, as a result, the family was closer and stronger than it had ever been.
With Paul’s and Nancy’s rising income, they completed their proposal in 36 months rather than 60. Now fully discharged from their unsecured debts, they began a fresh start with an understanding that the ‘good life’ is when families pull together.
To protect our client’s privacy, aspects of this case study have been altered.
Photo by Nataliya Vaitkevich, Photo by Djordje Petrovic, Photo by Yan Krukau

Find out how much you can save with our Consumer Proposal Debt Calculator
Use the slider below to tell us how much you owe and we will show you how much you can save!
*This calculator simply provides an estimate of the total savings you could receive filing a consumer proposal. Actual results may vary as each financial situation is unique. Your actual payments will be based on your income, assets, and debts.
Do Not Include Mortgage or Car Loan Debt.
With a consumer proposal at 0% interest, you will only have to pay back:
$3,480/$58 per month
*This calculator is for demonstration purposes only. Your results may vary based on your unique financial situation.
David Sklar & Associates is here to support your financial recovery
Learn how we can help you find debt relief with a consumer proposal or personal bankruptcy. Our passionate and experienced team at David Sklar and Associates has helped thousands of individuals break free from crippling debt payments. Our experts can answer any questions about your debts and recommend a solution based on your unique needs and goals.
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