Bankruptcy is a difficult decision to make

As with most of life’s challenges – it can be a process of learning, growth, and positive renewal.

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Based on 671 reviews
02:09 20 Jan 21
Jackie is an amazing person, she takes her time to make sure you understand everything. Every question I had she was always a email or text away with a quick response. Thank you again
danny adlabi
20:11 19 Jan 21
Jackie Stanley was amazing she was kind and wonderful to work with i am so grateful for her help she set down went over all my questions and my situation and i got all the help i need it
mer irf
19:59 19 Jan 21
Jackie made me feel very comfortable from the minute I walked in. She treated me with humanity and respect. She is also very professional and knowledgeable; she explained very clearly what was involved. Thank you Jackie for giving me the chance to start anew.
Dorianne White
15:06 19 Jan 21
We were so tired of our debt holding us back. We reached out to Jackie at David Sklar and she was so great from day one! She was quick understanding caring! Our experience was excellent! Everything was smooth and easy. What a relief it was with Jackie at David Sklar!Thank You so much 😊
F Volpe
05:07 11 Jan 21
Best thing I ever did! Don't let the messaging out there convince you being unable to manage your debt is shameful and a failing. Cori is amazing! She knows what she's talking about and she will guide through all your options. Everyone I've dealt with at David Sklar has been respectful and friendly. This was life changing help for me.
Maria G.
19:07 03 Jan 21
Cori, she’s very helpful and patient. She treated me with respect. She took so much time to explain to me what’s the best way to resolve my financial problem and teach me how i can save to avoid thesame problem again. Cori thank you so much.
Nilda H.
23:34 21 Dec 20
I highly recommend David Sklar & Associates, especially Rhoda Lewis, she listened with patience, understood my whole situation, advised professionally, she has many years of experience and is very knowledgeable, I felt confident with her work, she handled my case and guided me every step of the way, she reviewed with me in detail, and is very caring. I really trust David Sklar’s team, they really work and help people in a very simple and professional way. I am so grateful for Rhoda’s work helping me through this situation. Now it is like I received a 2nd chance to live free, I can take control and now take care of other things that matter in my life. Thanks for taking away the stress & weight I was carrying on my shoulders. I can now sleep at night. God Bless you for all your work. Thank you.
21:14 12 Dec 20
The staff at David Sklar are professional, respectful and honest right from my first phone call. It made a really embarrassing and difficult situation easier to handle. Now I'm on the way to rebuilding my life for my family.Thank you to the team and especially Ashley from the Brampton location.
Omair pasha
17:32 11 Dec 20
Ashley Carter was great and helpful. Answered every and each questions in detail and politely. Thanks
L. M.
15:29 10 Dec 20
I'm am very pleased that I contacted David Sklar & Assoc. I dealt with Rhoda Lewis, she was very professional and understood my need for their services. Rhoda set up a repayment plan, that was very easy to follow and made everyone satisfied.Going to David Sklar & Assoc. Was the best choice, to make for rebuilding my credit. I recommend David Sklar & Assoc. to anyone who needs help with debt relief.
evangia cawley
17:51 09 Dec 20
From consult to resolution the service was highly professional. I felt heard and understood. There was no judgement. Jackie always responded to my questions in a timely manner. Most of all, Jackie went all out to see that I got the best care and advise she could find.
16:20 09 Dec 20
So grateful to the whole team at Sklar for the opportunity to start fresh after a very difficult time of job loss. They went the extra mile for me and have been stellar! J
Lioudmila Riagouzova
15:28 09 Dec 20
David Sklar and Associates is an outstanding firm. Jackie Stanley is an excellent, professional and warm trustee. Thank you Jackie.
David Gnesin
14:48 08 Dec 20
Ashley Carter was ver professional and understanding. Clearly she assisted in the best way to deal with our issues and executed them very efficiently.
Alphonse Nguyen
15:58 27 Nov 20
Rhoda had helped, not only myself but also my mother, with our situations and with utmost understanding and compassion. She is very thorough with her work to make sure your case is successful. We highly recommend her expertise if you ever in need of a consumer proposal.
Chris Childs
06:27 17 Nov 20
Firstly I liked the convenient location (Head Office) located on the north side of Fairview Mall, parking was also as never a problem. Took myself some time to really 'Hit rock-bottom' before realizing that I had no choice, But to declare bankruptcy. Skylar & Associates was the first Trustee office that I contacted speaking to Associate Jackie Stains for a free phone consultation. Not knowing much about the process (bankruptcy) I also talked to other Trustee companies before ultimately trusting my 'Gut' by choosing David Skylar & Company's, Jackie. Highly recommended for her friendly, non judgmental approach & explanations regarding the Process. Questions were welcomed. Today I have a hopeful direction to move forward with far less stress & seeing light at the 'end of the Tunnel'!Chris Childs.
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Can I file for bankruptcy?

In order to be eligible for 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 bankruptcy?

Some debts cannot be eliminated through 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 bankruptcy?

A 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. When you file for bankruptcy, these debts will be eliminated, and your creditors will no longer be able to pursue you for collection.

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 filing for bankruptcy and when needed, navigate this process.

When you file for 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.

What can I keep if I file for bankruptcy?

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

How does surplus income impact my bankruptcy?

Each year the Superintendent of Bankruptcy outlines what they feel is a basic income for different family sizes. When filing a 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.

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

Most people we speak to understandably do not want to file for bankruptcy or lose the majority of the assets they have worked so hard for.  The alternative to 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.

Does filing for bankruptcy in Ontario affect my spouse?

If you file for 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.

The difference between a bankruptcy & a consumer proposal

When you file a 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).

How It Works:

Find and meet with a Licensed Insolvency Trustee to review your current financial situation and discuss your debt repayment options. At the end of this initial meeting, your Trustee should be able to advise you if declaring bankruptcy is the preferred course for you or if additional information is required. Both you and your Trustee need to agree this is the preferred path before proceeding.

The Trustee will help you to fill in the necessary forms, and then submit your file to the OSB.

  • You will no longer deal directly with your unsecured creditors (your Trustee will advise you on how to proceed with your secured creditors)
  • You will stop paying your unsecured creditors
  • You will make payments to your trustee for fees, assets or surplus income
    as appropriate
  • Your creditors will stop all lawsuits and collections actions against you.

The Trustee will sell or otherwise realise the equity in your non-exempt assets and hold the proceeds for disbursement to your proven creditors. In many cases, Real Estate Property and RRSPs may be yours to keep.

Depending on your situation, some assets may be exempt from seizure for sale by the Trustee. In Ontario, in accordance with the Ontario Execution Act, some of these asset exemptions may include:

  • Clothing: All necessary clothing for you and your dependants
  • Household Furnishings and appliances: Up to a value of $13,150
  • Tools of Trade: Tools used to directly earn a living to a value of $11,300
  • Motor Vehicle: Equity in one motor vehicle up to a value of $6,600
  • House Equity: To a maximum of $10,000.  If over $10,000, no exemption

All your creditors will be notified of your status by the Trustee.

If your creditors or the OSB requests a creditors’ meeting, you must attend. During the meeting, details of your bankruptcy, confirmation of the Trustee, directions to the Trustee from your creditors, and other matters may be discussed and voted upon.

If the OSB requests an examination of you by an officer of the OSB, you must attend. This will be an examination (under oath) and will deal with such issues as your financial conduct, the causes of your bankruptcy, and how your property will be administered.

You will be required to attend two financial counselling sessions where you will discuss the circumstances that led to your insolvency, ways to avoid them in the future, and how to manage your finances in the future.

The Trustee will send a detailed report to the OSB and to your creditors on your performance of the bankruptcy requirements, your current financial situation, and recommendations as to whether or not you should be legally released from your debts.

If you or one of your creditors does not agree with the Trustee’s report in regard to payments/surplus issues, a formal mediation process is available. If a creditor disagrees with anything else, they may send a notice of opposition.

If the Trustee, any creditor, or the OSB opposes the discharge, matters will then be dealt with in court.

If there are no objections or irregularities, qualifying first-time bankruptcies can be given an automatic, absolute discharge 9 months after the initial filing for bankruptcy without the need for a hearing.

If a creditor, the Trustee, or the OSB requests a hearing, or if you fail to qualify for an automatic discharge, a court hearing for the discharge will be held. Your presence will be mandatory.

If there is a hearing, the court will determine what type of discharge you will receive:

  • Absolute discharge: Releases you from the requirement to pay those debts covered in your bankruptcy.
  • Conditional discharge: The court requires you to perform other actions and or make further payments to your estate before an absolute discharge is issued.
  • Suspended discharge: The court sets the date of your absolute discharge to a future date.
  • Discharge refused: The court can refuse you a discharge.

If you have received an Automatic Discharge, An Order of Absolute Discharge, or you have completed the terms of either an Order of Suspended Discharge or an Order of Conditional Discharge, you will be released from paying the debts covered in your bankruptcy.

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!