Pensioner with credit card debt – How We Helped

Sunday, December 13, 2015 - 13:54

Bankruptcy, Asset Concerns

Sue Jung, one of our Trustees in Bankruptcy, met with a man at our Windsor office who was struggling with his debt. He was a retired widow living off of his pension and was unable to pay his credit card debt. He had struggled with his credit card debt for a few years but finally realized that he needed help when health related issues arose. He was unable to deal with the stress associated with his health as well as the stress due to the overextension of his credit.

He owed $40,729 to unsecured creditors when he came to us for help.

How we helped:

After meeting with him and discussing his financial struggles, Sue further investigated his situation in order to determine the best course of action.

We decided that it was best for him to file personal bankruptcy as he was unable to pay anything to his creditors due to his low income. He also didn’t have any non-exempt assets (any property that can be sold by the court) so he wouldn’t lose any of his assets to his creditors when filing bankruptcy.

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

By filing a personal bankruptcy, he was able to:

  • his creditors were prevented from taking legal or collection action against him
  • he was able to get a fresh start
  • he was discharged from his credit card debt

Where is he now?

He was able to pay his creditors and within nine months he had a clean credit card slate. He was able to keep all of his personal belongings including his vehicle and furniture. After the nine months, he attended two mandatory credit counselling sessions that have helped him manage his finances going forward.

We can help you become debt-free too - contact us for a free consultation.