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What is Personal Bankruptcy?

At David Sklar & Associates (Bankruptcy Trustees serving the Greater Toronto Area), we know that most of our bankruptcy clients never imagined that they would find themselves in such dire financial crisis. Our clients tend to be hard working, honest people who, often for reasons beyond their control, are simply not able to pay their debts and lack the assets to cover their outstanding unsecured debts.

Before we recommend bankruptcy, we work closely with our clients to see if there are any other debt repayment options that should be tried first. Only when we are satisfied that it is in the client’s best interest – do we recommend bankruptcy.


What is Bankruptcy?

Normally, when an individual files for personal bankruptcy in Ontario, they are declaring to the courts and their creditors that they are insolvent (unable to pay their debts as when they become due and have insufficient equity in their assets to cover those debts). Personal bankruptcy usually results in:

  • Settlement of your assets not including assets claimed as exempt property that you are entitled to
    keep (Your Trustee will explain),
  • Disbursement to the creditors, and
  • Release from the legal requirement to pay those creditors covered in the bankruptcy.

For a more detailed outline of the Bankruptcy Process in Ontario, visit our Personal Bankruptcy Process page.

Some debts cannot be eliminated through bankruptcy they include; child support, alimony, some student loans, court imposed fines, and fraudulent debt. If you have any questions regarding your debt’s ability to be eliminated in bankruptcy – be sure to ask your Trustee.

Personal bankruptcy in Ontario is governed mainly by the:

By law, a bankruptcy can only be filed through a Licensed Bankruptcy Trustee. Bankruptcy is an extremely complex process that can vary greatly from one person to the next – the information contained on this website provides a general overview only. If you have specific questions concerning your own situation, please call us for a Free Consultation meeting.

Despite changing social views which have reduced the stigma attached to personal bankruptcy, declaring bankruptcy in Canada is a very serious, complex legal action that should only be taken after all other debt repayment options have been explored.

Find Out If Personal Bankruptcy Is Right for You

If you are considering bankruptcy, it is strongly recommended you contact our firm to discuss all of your options. With six offices in the Greater Toronto Area, David Sklar & Associates offers a Confidential & Free Initial Consultation to discuss your situation – and determine if bankruptcy is right for you. Call 416-498-9200 or get started with our Quick Assessment Form to book your Free Consultation with the bankruptcy experts at David Sklar & Associates.


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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