Pensioner and part-time employee in debt – How We Helped
A client of ours in London, “Bill” came to us a few years ago as he was overwhelmed with debt due to reduced hours at his part-time job. Since retiring, Bill had picked up a part-time job as a custodian (in addition to his pension) in order to survive financially. Since his hours were reduced, he was unable to service his past debt and was therefore quickly incurring more debt. He was hoping his retirement would be debt and stress-free, but unforeseen circumstances had him swimming in $33,000 of credit card and line of credit debt. He needed help.
How we helped:
Since Bill had a good income, he would have had relatively high surplus income payments had he filed bankruptcy. Therefore, the best option for Bill was to make a consumer proposal.
By making a consumer proposal:
- Creditor action was stopped including collection activity and wage garnishments
- All interest charges stopped
- His total debt was compromised (he was able to pay a portion of his debt that was acceptable to him and his creditors)
In the end, Bill paid his creditors $200 per month for 60 months, amounting to $12,000 of his $33,000 debt.
Where is he now?
Bill was able to keep his vehicle, his RRSPs and his life insurance, which was very important to him. He paid off his creditors in 60 months and was quickly on his way to rebuilding his credit and living a much less stressful life as a retiree.
If you are overwhelmed with debt and need help, we are here for you. Please do not hesitate to contact us. It’s never too soon and it’s never too late.