Bankruptcy Kitchener Blog

Today I met with Shelia (not her real name for privacy reasons). She wanted to file for personal bankruptcy.  She was a 24 year-old single mother and had $29,000 in unsecured debts.  She found herself in financial hardship for several reasons and as a result, filed a personal bankruptcy to obtain a financial fresh start.  Her situation was as follows:
 

She had a factory job where she was working for $18 per hour.  She was managing well with her financial situation until she was in an accident which resulted in her losing her job and having a three month period of unemployment.  During this time, she was to receive child support, but payments didn`t always arrive on time and couldn’t be relied on.  As a single mother, she needed to ensure she could feed and provide housing for her 5 year-old son and herself.  The only income she could count on was the Child Tax Benefit. As there was barely enough funds for the basic needs, her car was returned to the bank to avoid unnecessary costs.  She just recently found new employment, but the pay is significantly lower than before, at $9.50 per hour. 
 

The debts that stacked up during this period of unemployment were in credit cards, and phone, dental, and cable bills, to name a few.   Several of the debts were in collections and there were numerous collection calls being received each day.  The stress from her financial situation was affecting her life and she was worried about her  future. That is when she called Hoyes, Michalos & Associates Inc. to help her develop a plan for her debts and future goals.  After meeting with us and making a plan, she has a positive outlook on her future and her ability to rebuild her credit again after bankruptcy.
 

If you are experiencing a similar situation and want to start to develop a plan for your future, call me at 310-PLAN for a free consultation. You can also email me any questions you may have.  If you want a healthy financial future, contact me so we can make it a reality.