Back in 2018, I wrote a series of blogs on “Who goes to see a Licensed Insolvency Trustee” to share the stories of people who had reached out to Taylor Leibow Inc. for help with their overwhelming debt. Reading about other people who may have similar circumstances as you will hopefully provide you with the comfort to reach out to a professional to discuss your financial situation. Let’s talk about “Sandy.”

Sandy is a senior who continued to work far past her retirement years in order to supplement her pension income. Unfortunately, her employer closed their business due to the pandemic and Sandy’s income dropped significantly. She subsequently suffered some health issues and is unable to seek new employment to increase her income. Sandy was unable to cover her basic living expenses, let alone pay anything towards her debt of $75,000 or her car payment. She reached out to us for a free, initial assessment where we reviewed her situation in detail and discussed the following options:

  • A debt consolidation loan was not viable at this time as she has no unencumbered assets to secure the loan, no ability to make payments and does not want to ask anyone to co-sign a loan for her.
  • A debt management program was not a workable option as she was not able to make a monthly payment of at least $1,500 per month for four years.
  • A consumer proposal which offers a compromise to her creditors was not an option as she had no surplus funds to offer creditors on her limited pension income
  • Sandy decided to file an assignment in bankruptcy and return her vehicle to the secured creditor. This solution enabled her to eliminate the monthly cost of her car payment and insurance while also eliminating her debt.

smiling senior lady checking finances

Reminding Sandy that the purpose of a bankruptcy is to provide relief to an honest, but unfortunate debtor provided her with the peace of mind to file an assignment in bankruptcy and move forward with a fresh start. If you are struggling like Sandy, reach out for a no obligation assessment of debt relief solutions that will work for you.

Kathy portraitBy Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee
CPA, CA, CIRP
Member and Secretary of the Ontario Association of Insolvency
and Restructuring Professionals (OAIRP)
Canadian Association of Insolvency and Restructuring Professionals (CAIRP)