Bankruptcy Kitchener Blog

I met with a couple from Elmira today in our Kitchener office.  They are in their early 40s and have three children.  The issue they were having was a shortage in funds each month due to their debt payments and monthly commitments.  Over the years they had accumulated about $70,000 in debts from credit cards, personal loans, and a smaller tax debt.  The tax debt was incurred in the previous year from cashing in their RRSPs in order to make ends meet. They own a house with approximately $10,000 of equity and lease a 2005 vehicle, as well owning an older vehicle.  They have a Registered Educational Savings Plan (RESP) for the kids totaling about $4,000.

They are both working and net about $4,500/month combined with child care expenses of $800 per month given that they both work, leaving $3,700 available to cover the mortgage, household bills, car payments, gas, insurance, food, etc.  When minimum payments required on these debts were considered, they were usually forced to use credit to fund the shortfall.  Further, with paying only minimum requirements and the continued use of credit, they saw the overall debt level increasing each month.   

They are looking for a plan to deal with their debts and allow them to focus on their family.  The bank had already turned them down for a consolidation loan and there is not enough equity in their home for an equity loan.  We sat down and reviewed their situation and then discussed the options available.    

After reviewing the options, they have decided that a consumer proposal would be an option that would allow them to deal with their debts, keep their house, vehicles, and RESP, and allow them to balance their budget again.  They are offering their creditors a payment of $400/month for 60 months. 

If you are experiencing financial hardship and looking for a plan to deal with your debts while protecting your assets, a consumer proposal maybe a possibility.  Call us at 310-Plan or send us an e-mail and we can arrange a free consultation.