David Sklar & Associates Inc.

Consumer Proposal & Bankruptcy Trustees
Serving the Greater Toronto Area

Why Do People Go Into Bankruptcy?

Sometimes it can seem like there are as many reasons for Bankruptcy as there are Bankruptcies.

However, with the thousands of people in the Greater Toronto Area that we have helped get through the Bankruptcy process – we know there are some common causes. Frequently, it is a combination of one or more of these causes that results in Bankruptcy:

• Income Loss. Usually due to job loss or health issues. Many people in the GTA are living paycheque to paycheque and do not have the resources to deal with income loss.


• Heavy Debt Loads. Most often, this is due to overuse of credit and lack of debt management. However, there are times when it can be caused by unexpected, large expenses.


• Divorce. When a marriage ends in a home that is close to the brink of financial failure, Bankruptcy may often be the result.


• Lack of savings. Without sufficient savings, people use credit during hard times to pay for the basics of life. The overuse of credit in these circumstances can quickly spiral into overwhelming debt.


• Delays in getting help. Many of our Bankruptcy clients might have been able to file for a Consumer Proposal, if they had come to us sooner.

If you recognise yourself or your family in the above, and you are not yet overwhelmed with debt, it might be time to consider looking at ways to manage your debt, start saving for emergencies, and yes, the “B” word – budget.

We have set up a free, simplified series on budgeting that can help you to start getting your finances under control.

If you are already overwhelmed by debt, and live in the Greater Toronto Area, we offer a free, no-obligation consultation with one of our caring Certified Professionals. During your consultation, we will review your current financial situation with you and explore all of your options. If we can see a way for you to fix your debt problems without using our services, we will show you how.