Debt Settlement Company or Trustee in Bankruptcy?

Sunday, March 13, 2016 - 19:48

Consumer Proposals, Asset Concerns


 “Mary” and her husband had been in debt for several years and had even been sued by one of her creditors. They decided to contact a debt settlement company to help them get out of debt and deal with this creditor in particular. They ended up signing a program and paying a debt settlement company several thousand dollars expecting the company to help them.

Much to Mary’s surprise, the lawyer who represented the company who sued her told Mary that the debt settlement company they were paying had no legal standing to help her with her debt. The lawyer recommended that Mary and her husband do some research. They were shocked and disappointed to find that there had been several complaints made against the debt settlement company they were paying. Mary was frightened. The lawyer was threatening to take her house and garnishee her income. She was embarrassed. How could she have been so naive to pay so much money to a company who did nothing for her. Mary and her husband did some more research and determined that the only way to stop Mary’s creditors from further action was to see a Trustee. 

How we helped

Mary met with Sue, a Trustee at Welker and Associates, in Clinton and together they decided that their best course of action was for Mary to file a consumer proposal.

Where is she now?

Mary is now making an affordable monthly payment and the bank who sued her was stopped from taking any further action. She no longer had to worry that her income would be garnished or her house seized. Mary was relieved and is on her way to a fresh financial start.