Administrative assistant overwhelmed with debt – How We Helped

Tuesday, March 24, 2015 - 13:54

Bankruptcy, Money Management

A client of ours in Kitchener found out first had just what a powerful and positive solution filing bankruptcy can be. Our client, “Amy”, was an administrative assistant and had over-extended her credit because of an unfortunate situation at work resulting in her hours being reduced. Her wages were being garnisheed and she owned an encumbered vehicle (meaning there was money owing on the car before purchasing and it could be repossessed even though the debt is not hers). In total, she had $27,000 of consumer debt. She was overwhelmed and needed help.

How we helped:

Since Amy’s income had been reduced, she couldn’t afford to pay her creditors. She also couldn’t afford to make the payments required with a consumer proposal. Therefore, we agreed that filing bankruptcy was the best solution for her.

By filing bankruptcy: 

  • her creditors were prevented from taking legal or collection action against her
  • she was able to get a fresh start
  • she was discharged from most of her debts

In the end, Amy was required to pay $200 per month for nine months.

Where is she now?

Amy was able to keep her vehicle but was required to keep making her car payments. After being discharged from her bankruptcy, she attended two free counseling sessions which helped her gain the knowledge she needed to get her on the right financial track. She is now on her way to rebuilding her credit.

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.