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.

Contact us for your FREE
no obligation consultation

David Sklar & Associates Inc.
Based on 713 reviews
Amanda Frappier
01:18 19 Nov 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.
Alex Taylor
22:03 17 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.
Giani Kokolakis
18:45 25 Oct 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.
Wajay Awan
07:29 12 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.
Bruce Locke
16:13 08 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.
Denise Simpson
15:17 09 Sep 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:)
Alex Lamparter
13:07 03 Sep 21
My experience with Ashley Carter at David Sklar and Associates was very pleasant and professional. The process was made easy by Ashley with her help in answering my questions and concerns.
Nicole Minister
17:43 02 Sep 21
Ashley she was extremely helpful,super friendly and understanding my situation. I am very please for the service I received and I will recommend this Company to anyone in need of consolidating. Thanks so so much.
rr 28
12:44 21 Aug 21
I finally pulled the trigger and seek help from this team. I tried to pay my debt in the way it should be until the pandemic made it even worst and couldn't keep up with my payments anymore. Jackie is an amazing person, I told her the problem, she gave me the solution and gave me a variety of options and walked me through the process. That simple. Thank you so much.
Vi Smith
18:09 13 Aug 21
Dealing with Jackie made the process so much more comfortable. From my first phone call with her I never felt like I was being looked down on. Jackie made this as easy as being in this situation could be.
fidel Cruz
14:35 24 Jun 21
I have to say, I never thought that such process could have been so quick and easy. But then again I guess that's what happens when you deal with professionals. I dealt personally with Rodha Lewis, who was very attentive to my personal issue and very professional on her work. She's someone who will actually take her take and talk to you about the process and help you as much as she can. I am very grateful to her and very appreciative of her work. I couldn't have dealt with someone better. Thank you very much Rodha for your work.
Maria Curbelo
13:43 23 Jun 21
I just completed my proposal and I am thrilled. Rhoda was delightful to work with. She helped me end the phone calls and start rebuilding my life. I highly recommend the services here and will always recommend to anyone who asks. Definitely seek out their services if you are in need of some help.
Jelena Petrovic
18:06 20 Jun 21
Very professional and fast service! Also, personable!.. they don't treat you like a number, but like a person.From the time I first contacted them, until I was set up there has been not more than 7 days.I dealt with Jackie, she was great!
Mark Simmonds
21:50 16 Jun 21
I would just like to say thank you to David Sklar & associates for helping me out in this difficult time I was in way over my head, I was introduced to Jackie Stanley, at that moment things got better the calls stop. Jackie was so professional helpful, trusting answered all my calls all my Text, and emails professionally and respectful!! I can’t believe it, and now I’m gonna build my credit rating back up and have my life back Thank You, Jackie Stanley at David Sklar& associates, for doing an outstanding Job!!!!
Richelle Barriault
17:57 16 Jun 21
I am not very good at putting words together especially when your speechless for all the help from such a friendly happy non judgemental team. From being financially stressed and depression hitting all at once I connected with Jackie Stanley💯❤❤ from David Sklar team in a whole other level,she is an absolutely joy to deal with and very informative let me know there is light at the end of the tunnel.. despite my struggle the amazing lady Jackie Stanley was able to put a smile on my face and make me laugh super happy and grateful 🙏I was able to connect with her from David Sklar &Associates team I 💯 percent recommend her (Jackie Stanley) and will continue to recommend her. To any one looking to get out of debt or have any questions belive me when I say you will not be disappointed with Jackie she's such a great person and I'm lucky to have been able to recieve the help and guidance from such a wonderful person and you will be also...look no further no where but up from here ...Thank you So so much Jackie much appreciated
Grace Muller
17:55 25 May 21
I must admit that I am so glad I called! I spoke to Rhoda Lewis who right away made me feel at ease. She's so caring and supportive I highly recommend her. Thanks to her my life is now on track! Thank you David Skylar & Associates Inc!
Next Reviewsjs_loader

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!