Personal Bankruptcy Ontario

Personal Bankruptcy is a difficult decision to make & We are here to help

Personal bankruptcy in Ontario is a form of debt relief. It is often considered a last resort for people who are unable to pay back their debts. As with most of life’s challenges, it can be a process of learning, growth, and positive renewal. If filing bankruptcy is the right solution for you, we will hold your hand before, during, and after the process is complete.

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David Sklar & Associates Inc.
Based on 743 reviews
Nilda H.
20:18 16 Jun 22
The best decision I've made was to contact David Sklar & Associates, they are experts in this matters and also have dedicated Licensed Counsellors that provide the best customer support, like Rhoda Lewis, who I highly recommend. She worked tirelessly on my case, explaining ever detail to me willingly. She demonstrates a true interest in her clients. I appreciate how she patiently walked me through what to do, step by step. I now have control over my finances, as a result my life is much more peaceful and I can focus on what matters. Thank you!
Peggy Bulger
15:10 14 Jun 22
Very helpful and friendly! I am more than satisfied with my experience here. And more than happy with the outcome! Would definitely recommend .
Colleen H
12:50 14 Jun 22
Jerry at David SKLAR helped me thoroughly understand my options and made me feel at ease. If you are looking at this type of service/help, I 100% recommend you give them a call.
ariezel erandio
21:33 06 Jun 22
Rhoda is a wonderful person, She help me and guided me throughout the process. I couldn’t do it without her support and expertise. Now I can start fresh and full of hope of a better life ahead of me.
Aliya H
12:11 04 Jun 22
The service I recieved from David Sklar and Associates was great. I was able to meet with Christin Sylver. She is kind, understanding and, professional. She was able to answer all the quesions that I had regarding my debt. At the end of our meetings, I felt that there is a heavy burden lifted from my shoulders. I recommend Chistine to anyone who is looking into debt relief.
Patty Murphy
21:34 18 May 22
Jerry is a very patient person, he answered all my questions and made this experience so smooth and easy for me. I was not sure what to expect but dealing with him made me feel so much better. He sure knows what he is doing and how to put people at ease for sure (should have done this long ago). I recommend him to anyone I am so glad I had him on my side and now to do my part. Thanks Jerry ur greatPattie
Debbie Livingston
01:24 11 May 22
Rhoda Lewis helped me achieve a fresh start two and half years ago! She was very professional with a very warm, caring personality! I emailed her today with a question and she responded quickly. She's great at her chosen profession!!
Cassandra Keenan
21:05 10 May 22
Nothing but good things to say about Jackie. She was so nice and so understand and everything was so quick and easy. In a matter of a week, there was the solution that I never thought was possible. Thank you so very much for everything that you have done. ❤️❤️❤️
Hubert Z
03:08 10 May 22
I was in a lot of debt and stress, Jackie Stanley with David Sklar & Associates was very professional, and extremely helpful with getting out of debt. I should of did this sooner, they take the all the weight and stress of a persons shoulders, amazing team at David Sklar & Associates!!
prettylush 13
02:42 10 May 22
Jackie helped me out during a really tough time and she made the entire process very easy and painless. I highly recommend reaching out to her if you find yourself in any financial trouble. You won’t be disappointed!
Kipyego arap Serem
19:00 09 May 22
I had a good experience with Jackie. Making appointment to see her was easy and follow up was great. I appreciated the detailed information she gave and the clear explanation of the options I had. While I landed on this company without anyone's recommendation, I will be happy to recommend their services to those who need them.
Ankita Sisodia
18:51 09 May 22
Jackie has been really helpful with my issues. She is approachable and friendly and I recommend her to anyone trying to access her services.
Christina Ivany
15:52 07 May 22
The service that was provided to me from Trina at David Sklar and Associates was nothing but superb! I was referred to them through family, and Trina was nothing but understanding and so so so helpful! Every part of the process was smooth and efficient and she explained everything to me so I would be able to understand the process. Can’t believe the weight that has been lifted off my shoulders. Thank you so so much Trina!
Linda Bennett
15:29 06 May 22
I’m so glad that I spoke to Rhoda. I was nervous having to claim bankruptcy, but Rhoda is very resourceful and has a wonderful way of putting you at ease. I felt like I was speaking to my best friend. Rhoda from the bottom of my heart thank you for your help and kindness it goes along way. Linda Bennett
Emma Higgins
19:14 02 May 22
I was absolutely terrified of admitting I needed help and was in a tough position where my best option was to file for bankruptcy. As someone with severe anxiety it was one of the hardest calls I had to make but once I spoke with Trina at David Sklar she immediately made me feel at ease and like I was in good hands. I mostly dealt with Trina and Eva who were so kind and communicative throughout the whole process and made it as painless as possible.I did briefly speak with a couple of other associates from time to time and they were also equally as lovely. The reviews for this company obviously say a lot about these guys and it rings true. I’m not someone who usually writes lengthy reviews but I am happy to recommend David Sklar and associates for anything. Thank you guys for always treating your clients like human beings and always being available for questions or concerns.
Jan Toone
00:43 28 Apr 22
I’m finally debt free! I made the right decision by contacting David Sklar to help me with my debts. Grateful to his Associates, especially Cori Naron, she’s very approachable, knowledgeable and kind. She indeed helped me succeed (with her advices and experiences) to pay off my balance before my due date 😇. Her office at St. Clair Ave. West is very accessible as well. I can now focus with my other goals - for I am a mother of Four….
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Personal Bankruptcy in Ontario

Bankruptcy should never be entered into lightly and should only be considered after consulting with a licensed insolvency trustee. We’ve helped thousands of clients weigh the pros and cons of declaring personal bankruptcy and when needed, navigate this process. 

When you are declaring personal bankruptcy in Ontario, you are declaring to the courts and your creditors that you are unable to pay your debts as they come due and have insufficient assets to cover those debts.

Personal Bankruptcy vs A Consumer Proposal

When you declare personal bankruptcy, you are permitted to keep certain assets that are exempted by the Ontario Execution Act but are required to submit all other assets for settlement.

In a Consumer Proposal, the person filing is able to keep all their assets (as long as they continue to make any required payments i.e. mortgage payment, car loans etc).

What can I keep if I file for personal bankruptcy?

Everyone’s situation is different, depending on your financial situation, some assets may be exempt, including:

Can I Declare Personal Bankruptcy?

In order to be eligible for personal bankruptcy you must be, 18 years of age or older and you need to be insolvent. This means you owe a minimum of $1,000 and cannot afford to make payments when they are due.

What debts cannot be eliminated by personal bankruptcy?

Some debts cannot be eliminated through personal bankruptcies. These include child support, alimony, student loans (within 7 years of completing studies) court-imposed fines and fraudulent debt.

What debts will be eliminated by personal bankruptcy?

Personal bankruptcy eliminates most, if not all, of your unsecured debts. Including any credit cards, lines of credit, personal loans, payday loans, and income tax debt.

I do not want to lose all of my assets, is there an alternative?

Most people we speak to understandably do not want to declare personal bankruptcy or lose the majority of the assets they have worked so hard for.  The alternative to personal bankruptcy for individual’s is a Consumer Proposal

A Consumer Proposal will allow you to keep your assets including your home and cars. However, you must continue to make payments on those assets. In other words, your mortgage and car payments won’t be affected by a Consumer Proposal. The unsecured debts reduced by a Consumer Proposal are credit card debt, personal loans, lines of credit, pay day loans, and similar types of debt.

A Consumer Proposal is a smart decision for debtors with significant assets, who have stable income, or simply just want to avoid bankruptcy and not have it appear on their credit report.

How Does Surplus Income Impact My Declaration of Personal Bankruptcy?

Each year the Superintendent of Bankruptcy outlines what they feel is a basic income for different family sizes. When declaring personal bankruptcy your income and size of your family impacts the amount you will need to pay and for how long. Surplus income is any income earned above the standards set by the Superintendent of Bankruptcy. You are required to pay half of any surplus income you earn above that amount.

Does Declaring Personal Bankruptcy In Ontario Affect My Spouse?

If you declare personal bankruptcy, it will not affect your spouse. The only exception to this rule is if your spouse has co-signed or guaranteed your debt, or If you both have a credit card on the same account. It’s also possible that assets with equity held jointly with your spouse, may be affected.

Personal Bankruptcy FAQ

People often file for bankruptcy when they are faced with out of control debts due to interest, constant collection calls, and creditors threatening to take legal action. This is an option pursued when you can’t afford to pay back your debt and need relief.

Unless your assets are protected, you will either have to pay to keep your assets or turn them over to the Trustee to be sold for the benefit of your creditors. Your protected assets will typically include all or a portion of:

  • One automobile
  • Household assets
  • Personal belongings
  • RRSP savings
  • Some equity in your home
  • Tools of trade
A bankrupt individual is allowed to keep certain assets exempted by the Ontario Execution Act but is required in certain situations to submit all other assets for settlement. In a Consumer Proposal, however, the individual filing the Proposal can keep all their assets. This is provided they continue to make any required payments (i.e. mortgage, car loan).

Bankruptcies are often a ‘last resort’ option reserved for when all other options have been considered. Even then, there are situations where an individual may choose a Consumer Proposal:

  • The debtor has a professional designation that prohibits the filing of bankruptcies
  • The debtor has assets (i.e. a home or family jewellery) that they are unwilling to part with
  • The debtor is considering sponsorship of a family member overseas
  • The debtor simply does not want to
  • The debtor’s spouse may have to declare bankruptcy too
  • The debtor has filed bankruptcy in the past and realizes how difficult another filing will be for them


The Professionals at David Sklar & Associates will help you to make the decision that best fits your needs.

Bankruptcies will be put on your credit record, and all creditors (secured and unsecured) will be notified. Your employer will only be notified if the Trustee is required to stop a garnishment of your wages. Bankruptcy is a Court process, so a record of your bankruptcy is maintained in the Court’s records, which can be accessed by the public.

Not necessarily. Depending on the amount of equity in your home, you may be able to pay the value of the equity to your Trustee for distribution to your creditors. As long as you are current with your mortgage payments, you are normally able to maintain the payment to the secured lender and keep your home. You should discuss this further with your mortgage lender and your Trustee.

Yes. Your Trustee will provide further information.
The cost of bankruptcy depends on several factors, including the value of your assets and your income. Speak with a Licensed Insolvency Trustee to get further details.
Not necessarily. When you have assets that need to be sold or distributed, the Trustee will handle their disposal. When you have assets that you do not have equity in (that is you owe more on secured loans for these assets than the assets are worth) and your Trustee agrees, you may be able to negotiate with the holders of the secured loans to keep those assets.
In most cases, as long as the debt was incurred beforehand, it is a provable debt, the Trustee will send notice to the creditor, and it should be cleared.

If you do not receive a discharge, once the Trustee has completed the administration of your estate and the Trustee has been discharged, you will remain responsible for your debts, plus interest, and your creditors may once again commence collection action against you.

You will need to speak to your Licensed Bankruptcy Trustee regarding your unique situation.
Usually, bankruptcies take 9 months from filing to discharge. That said, there are a number of factors that can change the length of bankruptcies. For example, if there is ‘surplus income’, if this is not your first bankruptcy, if there are disputes from your creditors, or you fail to comply with your duties as a Bankrupt, the process may take longer.
If you are a resident of Canada, owe more than $1,000, are 18 years of age or older, and have explored all other debt repayment options, you may be eligible to file for personal bankruptcy.

Personal bankruptcies only cover unsecured debts. However, certain unsecured debts are not covered by bankruptcies such as child support, alimony, fines and penalties imposed by the Court, and debts that are found to be fraudulent. Student loans may be covered if the individual ceased to be a student for more than 7 years before filing and meets other requirements. Secured debts such as mortgages and car loans are also not covered in bankruptcies unless you relinquish ownership of these assets. It is always advisable to speak with your Trustee for details on your specific situation.

At David Sklar & Associates, our team is here to help you every step of the way. We not only explain every option available to you, we also give you the tools to help rebuild your wealth. Speak to one of our licensed debt professionals today. Let us show you there is hope and a way to financial freedom! The calls will stop, the stress will disappear, and you can start focusing on your future!