Married store manager, $204,000 in debt – How We Helped
A while back I met with a man in our Kitchener office to discuss his debt repayment options. He was a married man, working as a store manager, but also contributed to his income by managing sales on the side. Over the years, he had over-extended his credit as he was receiving lower than expected business income. He now found himself $204,000 in debt, not including what he still owed on his mortgage. He needed help now.
How we helped:
In order to protect the $10,000 of equity existing in his property, and due to his high income ($4,900/month net), we suggested he file a consumer proposal instead of filing bankruptcy. If he filed bankruptcy, he may lose certain properties (such as his vehicle, house, etc.) whereas in a proposal you can retain your assets.
His creditors agreed to a payment of $800 per month for 60 months, totaling $48,000.
By filing a consumer proposal, he was able to:
- keep his vehicle
- keep his property
- keep his life insurance
- immediately stop all creditor action and interest charges
Where is he now?
He has now completed his consumer proposal and his two mandatory credit counseling sessions. He continues to work as a store manager and is determined to stay out of excessive debt from now on.
We can help you become debt-free too - contact us for a free consultation.