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 751 reviews
I made a review in 2017 i will again make a review now 2022. Thank you Jackie for everything that you do for me. Forever thankful. I have paid everything already. On one spring day back in 2017 i was in a lot of stress, dealing with phone calls from the bank. A friend of mine told me to go to David Sklar’s office (its close to my apartment) as she is also paying hers( in another firm). So i did and i was glad i did. Thank you and God speed!
22:49 08/13/22
(From K.M)After a great deal of thought, that actually went on far too long and only created more hardship, I finally called David Sklar and Associates. They immediately set up a mutual time for an in person appointment. I had the greatest fortune to meet with Jerry Janiec!From the moment I met Jerry, I felt at ease and the weight I had been bearing began to lift.Jerry is very personable with a happy, kind, patient and gentle nature. He is very knowledgeable and extremely thorough in all of the information and options that were presented. Jerry was very supportive in the option I chose.I read other reviews on David Sklar and Associates and I whole heartedly agree. If you are struggling and it seems never ending, make the call to these people. I should have much, much sooner.Thank you so very much Jerry Janiec. You truly are a blessing.Sincerely, Karen M.
16:08 08/08/22
Great job. Bibi , marvel and many associated help us to serve the problem . Appreciate to your team David sklar .
15:26 08/05/22
Cori was kind and helpful, anyone interested in learning more about debt options would be fortunate to hear her insights and experience on the subject
13:55 07/26/22
Cori has been a great help in relieving stress caused by debt in my life, she has excellent knowledge in her line of work. Cori has a lot of patience and takes her time with her clients to make sure they understand. It has been a great pleasure working with Cori.
18:15 07/20/22
The service excellence I received was amazing. The staff at friendly and considerate and show empathy when dealing with such a difficult choice.
19:52 07/19/22
Caner uzun.. this place is full of professional lawyers all my debt problems are gone all I had to do is make an appointment go see them boom its that easy thank you all for your help
17:19 07/18/22
My mother introduced me to the company and I signed up and I spoke to Christine Sylver ... Let me tell you .... Christine Sylver is the best licensed debt counselor ever. She helped me from when we starting talking up until now and she's a great individual. I would recommend her and this company to anybody. I can't wait to have me debt cleared and start my life again.
20:21 07/06/22
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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.