Homeowner in debt and in need of help - How We Helped

Monday, August 25, 2014 - 19:47

Consumer Proposals, Asset Concerns

I recently met with a man in our Kitchener office who was struggling with his debt. He was a commissioned sales person, so he often times found it hard to budget accordingly as he was never sure how much income he would receive on a monthly basis. To top it off, he had recently found himself with a reduced income due to layoffs and periods of unemployment. During that time, he had over-extended his credit in order to get by.

When I met him, he had approximately $45,000 in unsecured debt, plus a mortgage of $135,000. He needed our help to get a fresh start.

How we helped:

In our initial meeting, we discussed his debt, as well as his assets, his income and his household budget. 

After reviewing his finances, we determined that a consumer proposal was the best course of action as it would protect the equity in his house. He had approximately $12,500 in equity in his home which would have been affected had he filed bankruptcy. His creditors agreed to a payment of $250 per month for 60 months, totaling $15,000.

By filing a consumer proposal, he was able to:

  • eliminate his credit card debt
  • protect the equity in his house and keep his vehicle
  • immediately stop all creditor action and interest charges

Where is he now?

He was able to pay his creditors the agreed upon amount and was able to keep his home and his vehicle. He attended two mandatory credit counselling sessions that have helped him manage his finances going forward.

We can help you become debt-free too - contact us for a free consultation.