Self-employed construction contractor in debt – How We Helped

Thursday, November 12, 2015 - 13:53

Bankruptcy, Business Concerns, Government Debt


I recently met with a man in our Kitchener office who was struggling with his debt. He was a self-employed construction contractor who had fallen behind on his taxes. Because of this, Canada Revenue Agency froze his bank account and sent him requirements to pay his customers.

When I met him, he owed approximately $85,000 to unsecured creditors, plus his car loan. 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 agreed that filing personal bankruptcy was his best option to get out of debt. Although the debtor earned a good income, his family of three counted on him to support their family financially and therefore didn't have enough money to make a consumer proposal.

His bankruptcy required him to pay $200/month for 9 months, totaling $1,800. A minimum fee was also required to be paid.

By filing bankruptcy, he was able to:

  • eliminate his credit card debt
  • keep his vehicle and hand tools, as tools of trade are exempt from creditors
  • immediately stop all creditor action and interest charges

Where is he now?

He was able to pay his creditors the agreed upon amount and is now debt free. He attended two mandatory credit counselling sessions that have helped him manage his finances going forward.