Part-time employee struggling with debt - How We Helped

Wednesday, May 27, 2015 - 19:28

Bankruptcy, Debt and Relationships

A few years ago, I met with a woman in our Kitchener office who was in need of a financial fresh start. She was a part-time Personal Support Worker and was recently separated. She did not foresee the expenses that she would take on during her separation, and on top of that, she wasn’t receiving many hours at work. She had over-extended her credit and had found herself in $59,780 of unsecured debt, including credit card and vehicle debt.

How we helped:

After meeting with her and discussing her situation, we realized that filing personal bankruptcy was the best option. There is no set cost or fee for filing personal bankruptcy. The maximum amount you pay is based upon your income and ability to pay, so considering her low income, personal bankruptcy was the best option. She also had no non-exempt property (assets) that would be affected by the bankruptcy. 

In order to file personal bankruptcy, she had to pay a minimum fee of $1,800, as well as $200/month for 9 months.

Where is she now?

She paid her fee and her monthly payments for nine months and has since been discharged of her debts. She was able to keep her vehicle, RRSPs, furniture and personal belongings. It will take some time, but she is currently working on improving her credit score.

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.