My name is Adam Rauf and I manage the Guelph office for Hoyes, Michalos & Associates Inc.
As an associate (and articling student in the process of becoming a Trustee in Bankruptcy) I meet with clients on a regular basis that are struggling with their debts.
I met with a woman this past week who is going through a very difficult time. She was forced to drop out of her master’s program leaving her thesis undefended due to her medical conditions. Unfortunately she was forced to live off her credit cards and student loans and as a result her debts piled up and she cannot pay her bills as they come due.
She’s hoping to qualify for EI disability so she continue her rehab therapy and resolve her medical issues, which thankfully is showing positive results.
After sitting down with her I discussed all the options available to her, personal bankruptcy, a consumer proposal and even doing nothing.
Doing nothing is a real option for many people. If you are an individual whose sole source of income is Unemployment Insurance, Social Assistance, Ontario Works, Pension Income (government or work pension), your creditors (the people you owe money to) have no legal rights to garnisheeing your wages. The best advice we give is to make sure you bank with an institution you do not owe money to as they could start freezing accounts for any debts they are owed (i.e. credit cards, line of credits etc).
However this still does not stop the stress of phone calls and the collection agencies from harassing you and anyone they might have contact information for.
Thankfully there is always an option for a Consumer Proposal. A consumer Proposal is a legal option to deal with your debts and is quickly becoming Canada’s Number one alternative to bankruptcy.
Simply put, a consumer proposal is an offer that you make to your creditors to pay back a portion of what you owe over a set period of time (no longer than 5 years). we were able to put together a consumer proposal that included what she would have to buy back for the consumer proposal. The consumer proposal avoids the headaches, stress and legal consequences that someone would experience when filing a second bankruptcy.
If you think a consumer proposal might be the solution for you, visit us on-line and find out more. Alternatively, feel free to call us directly at 310-PLAN and arrange a free consultation with a professional in your area. There’s no harm in sitting down with one of our trustee’s who can explain all the different options available to you.
If even a consumer proposal is more than you can afford, the final option is personal bankruptcy. Bankruptcy discharges your unsecured debts, but there is a cost to bankruptcy, and it will negatively impact your ability to borrow in the future.
If you think a consumer proposal might be the solution for you, visit us on-line and find out more. Alternatively, feel free to call us directly at 310-PLAN and arrange a free consultation with a professional in your area. There’s no harm in sitting down with one of our trustee’s who can explain all the different options available to you.
You must log in to post a comment.