Personal Bankruptcy FAQ's

Declaring personal bankruptcy eliminates most—if not all—of your unsecured debts. This includes credit cards, lines of credit, student loans (if you’ve been out of school for more than 7 years), personal loans, payday loans, and income tax debt. Some debts cannot be eliminated by declaring personal bankruptcy, including child support, alimony, court-imposed fines, and fraudulent debt.

What you get to keep when you file for personal bankruptcy depends on many factors. If you’re concerned about losing your pension, your RRSPs, your home, or other assets, it would be best to contact us so we can explain how this would look in your situation. 

Learn more about what you get to keep when you declare personal bankruptcy

There are two debt-relief options that we like to recommend—personal bankruptcy and consumer proposals. Either declaring bankruptcy or filing a consumer proposal will help you to clear your debts and protect you from creditors. However, there are some differences to be aware of:

  1. With bankruptcy, some of your assets are not protected. With a Consumer proposal your assets are protected.
  2. If your income increases after declaring bankruptcy, your monthly payment will also increase. With a consumer proposal, your monthly payment  will not change, regardless of any increases to your income.
  3. You have the option to pay off your consumer proposal at any time and begin the road to financial recovery sooner. With personal bankruptcy, the length of time it takes to receive your discharge depends on many factors. Learn more about bankruptcy 
  4. In general, there are fewer requirements involved with a consumer proposal than with bankruptcy. 

If you have any additional questions about consumer proposal vs personal bankruptcy, we are just a phone call away. 

If you are over 18 years of age, owe $1000 or more in unsecured debt, aren’t able to pay your debts, and owe more than the value of your assets, you may consider declaring personal bankruptcy in Ontario.

Bankruptcy stays on your credit report for 6 years after the discharge date, or 7 years after the date filed. If a second bankruptcy is filed, it will remain on your credit report for 14 years after you receive your discharge.

A consumer proposal can be removed from your credit report as soon as 3 years after you’ve paid off all the debts, or a maximum of 6 years from the date it was filed, whichever comes first.

After filing for personal bankruptcy or a Consumer Proposal a lender may not want to take the risk of lending you unsecured credit or loans without some form of security. That’s why secured credit cards are the perfect tool for individuals with poor credit.  A secured credit card requires you to pay upfront and create a credit limit with your own money. This way the lender takes virtually no risk. Once you receive your new secured credit card you can continue to use it for everyday purchases and rebuild your credit in the process. 

The cost of declaring personal bankruptcy in Ontario depends on your unique financial situation. Factors such as monthly income, family size, and assets all play a role in the payment required. The licensed insolvency trustee at David Sklar & Associates will be happy to provide you with a free, no-obligation, consultation.

Getting into debt is easy. Getting out is a different story.

But it's still possible!

Did you know there is a Debt Program federally regulated by the Canadian Government, designed to help citizens avoid claiming bankruptcy? This amazing program can only be administered by a Licensed Insolvency Trustee (LIT).

If you’re struggling to make your payments every month and creditors won’t stop calling, we can help.

What our clients are saying.

Based on 774 reviews
Jerry was professional and was easy to deal with
00:09 11/29/22
I was quite nervous and a little embarrassed that I needed financial advice. I met with Jerry Janiec and he was very helpful. He made me feel comfortable and explained everything in easy to understand terms so that I understood what my options were. I would recommend David Sklar & Associates for anyone in my position.
19:53 11/17/22
I was fortunate enough to be referred to David Sklar & Associates Inc. by a family member. Now in the10th month of a Consumer Proposal process, I am very impressed with the organization, professionalism and impeccable customer representation that I have experienced. To this effect, I amparticularly thankful to Jerry Janiec and Rhoda Lewis for their excellent work.
12:21 11/16/22
Recently dealt with Christine at David Sklar & Assoc. and worked out a Consumer Proposal to put forth to my creditors for my Credit Card debt. She was very courteous, professional and put me at ease with a proposal that I can afford on a monthly basis, which will eliminate my debit in a reasonable timeframe. I would recommend Christine and this firm in a heartbeat. Very happy with the service and attention I got !!
01:59 11/15/22
Excellent customer service. Special thanks to Olga for being prompt and helpful. She’s a star. Bibi is helpful as well. Great agency to work with.
19:28 11/14/22
After seeing your commercial play on CP24, I realized that it addressed all the questions and concerns I had about my financial situation. It all started with my one phone call to your office. I had the extreme pleasure of working with Cori Naron at your St. Clair West office in September 2022. She took the time to explain what my options were knowing that it was a very stressful situation with my debt load. She made me feel at ease with my decision to file a consumer proposal and outlined the benefits to me. She is thorough and her attention to detail is outstanding. While it takes a little while to reap the benefits of making this hard decision, she took the time to reassure me that it was in my best financial interest. Well done David Sklar & Associates for having such an amazing representative at your company and for allowing me to "get a fresh start"!
14:31 11/14/22
Very highly perfection individual, well executed and greatly knowledgeable in his work, which guided me me the right decisions making opportunities. Thank you.Sincerely, Peter Romasz
20:18 11/13/22
Trina Powell was very helpful and made the process very easy. Thanks again for all your help.
17:59 11/06/22
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We are David Sklar

Our team of Licensed Insolvency Trustees in Ontario can help you get out of debt and in control of your own financial future. We’ve helped thousands of people and we can help you too. 

We know this is stressful, but you're not alone.

It’s going to be okay.
Book your free consultation today. We’ll do the rest.