David Sklar & Associates Inc.

Consumer Proposal & Bankruptcy Trustees
Serving the Greater Toronto Area

Bankruptcy – No One Wants To Go There

In the Greater Toronto Area, there were over 15,000 Bankruptcies in 2009. Many of these people were our clients – and none of them planned on going into Bankruptcy.

Some of our Bankruptcy clients were the victims of chance – there was little or nothing they could have done to avoid the catastrophic events that put them into Bankruptcy.

However, many of our clients might have been able to avoid Bankruptcy – if they had taken action sooner.

Here are three essential lessons that many of our clients learned from their Bankruptcy:

Live Below Your Means:

• That is right – live below your means. Despite the bumper stickers, the kids with the biggest toys do not necessarily win – especially if getting those toys has put them in financial danger.


• Discovering how well you can live without spending every penny you earn, can be an exciting and ultimately rewarding journey.

Save Your Money:

1. Start by saving an Initial Emergency Fund – of $500 to $1,500 (depending on your needs). This will enable you to deal with most of life’s emergencies without having to use credit. Make keeping this fund full, a priority!


2. Build up your savings to the point you have enough to pay your living expenses for six months.


3. Begin saving money for your future – using specific goals and tracking.

Stay Out of Debt:

• Pay off your mortgage as soon as possible.


• Avoid using credit – learn the difference between want and need.


• If you have to use credit - Pay off your credit cards in full every month.

This All Sounds Familiar?

If most of this sounds like advice your Grandparents gave you - guess what? Your Grandparents were right!

The lessons they learned during the tough times, as their families struggled to survive, were some of the most valuable lessons in thrift and survival that anyone can learn.

Live Below Your Means – Save Your Money – Stay Out of Debt

P.S. Here is a fourth lesson you should also be aware of:

Be Pro-Active:

Many of our Bankruptcy clients would have been able to file a Consumer Proposal; gotten out of debt in a controlled and manageable process; and not lost their homes, if they had come to us sooner.

• If you cannot see a way out from your over whelming debt load – get professional help. If you live in the GTA contact us for a free consultation, where our Certified Professionals will go over your finances in detail and review all of your options with you (even the ones that don’t include our services!).

Sometimes, Bankruptcy is the right answer – but until you have explored all your options with a Bankruptcy Trustee – you won’t really know for certain.