The purpose of this series of blogs is to make taking the first step to see a Licensed Insolvency Trustee easier by reading about others who started their path to financial freedom by filing a consumer proposal.

Pretty well every debtor that I see for an initial, free consultation has different circumstances.  Just this morning, I saw three debtors with very unique situations who all filed consumer proposals to deal with their debt overload.

“Samantha” works full time, receives child support and the child tax benefit.  She has a fairly good monthly net income from these three sources and has previously been able to cover her living expenses and the minimum monthly payments on her debt.  She did not spend excessively or incur significant charges on her credit cards.  The debt had just accumulated slowly over time, and she was doing her best to pay it off.  Unexpectedly she became responsible for a debt that she co-signed for a family member.  This additional debt burden made it impossible for her to make ends meet.  After a detailed review of her assets, liabilities, income and expenses, Samantha decided filing a consumer proposal to her creditors would be the best solution with one monthly amount she could afford.

“Joe” currently receives a minimal monthly amount on disability and has no fixed address.  He had accumulated some debt over time and borrowed from pay day loans in order to get by on a monthly basis.  With the high interest accumulating on the pay day loans, he is unable to pay his debt in full.  We reviewed his options, including a bankruptcy and a consumer proposal.  Even though a personal bankruptcy would cost significantly less (with a fee of approximately $1,800), Joe decided the best solution for him mentally was to file a consumer proposal to his creditors.  He would minimize his monthly living expenses in order to be able to support the proposal payments.

“Jack” was working full time and had successfully filed a consumer proposal to his creditors.  Unfortunately, due to health reasons, Jack was unable to continue his employment and was put off of work on disability.  Jack could have declared bankruptcy (even after filing a consumer proposal) as his income had decreased significantly, and he would have no surplus income payments.  Jack personally felt it was best for him to try and amend the proposal to his creditors to a lower amount that he could afford.

Samantha, Joe and Jack all have unique stories and very different financial circumstances, but a consumer proposal will give each of them a fresh start financially.  Contact Fresh Start Now – Taylor Leibow Inc. today to obtain your fresh start.

By 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)