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Insolvency in Toronto

Before a person can file for Personal Bankruptcy or a Proposal – a Licensed Insolvency Trustee must examine their financial situation to verify that they are insolvent.


What is Insolvency?

Basically, a person who is insolvent must owe a minimum of $1,000 and

  • be generally unable to pay their debts as they become due, or
  • have stopped paying their debts altogether, and/or
  • have debts that are greater than their assets.

In addition, the insolvency must be more than a short-term, temporary situation.

What kind of people are insolvents?

In our experience, insolvents come from all social, economic, educational, religious, and ethnic groups.

Why do people end up insolvent?

Insolvency is often triggered by two or more factors such as:

  • Loss of job/income
  • Break up of marriage/common-law relationships
  • Lack of money management (over use of credit – no/low savings)
  • Prolonged health issues
  • Business failure
  • Co-signing of loans
  • Tax problems
  • Addictions gambling/alcohol/drugs

Is bankruptcy or a proposal the only answer for insolvents?

When we meet with our clients, we discuss all their options – and where possible, we recommend alternatives to bankruptcy and proposals. However, we have found that often when a person comes to us for help, they have already tried a number of different ways of paying off their debt including:

  • consolidation loans,
  • cutting down on expenses,
  • selling assets,
  • taking second jobs, and
  • direct negotiations with their creditors.

We recommend clients closely examine all their other possible options before they consider bankruptcy. While bankruptcy is always the last choice, it is sometimes the best/only choice available to an insolvent.

Are You Insolvent?

If you live in the Greater Toronto Area, are concerned that you might be insolvent, and want to see what you can do to get out of debt – book a Free, no-obligation consultation with the Licensed Debt Professionals™ at David Sklar & Associates. Call 416-498-9200 or use our Quick Assessment Form to book your Free Consultation.


We Can Help

If your debt problems seem insurmountable – we can help. At David Sklar & Associates, our Licensed Debt ProfessionalsTM have the experience and knowledge to help you get out of debt. During your consultation, we will help you understand what your current financial situation is, how best to fix it, and how to move on to a better life. With six offices in the Greater Toronto Area – we are here to help.

Call Us Today For a Confidential & Free Initial Consultation Call 416-498-9200

or Get Started with Our Quick Assessment Form Today

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