Restaurant owner with tax debt – How We Helped

Thursday, March 3, 2016 - 13:53

Consumer Proposals, Asset Concerns, Business Concerns

“Jim”, a client of ours in Exeter, came to us a few years ago as he was overwhelmed with his debt load. He was a self-employed restaurant owner, and over the years he realized that due to his lack of knowledge when it came to managing his finances, he had dug himself into roughly $44,000 of tax debt. He was afraid that he would lose his business as well as his vehicles, RRSPs and his timeshare. He worked hard to get where he was and didn’t want to see it all disappear because of his tax debt. He needed help to get back on track.

How we helped:

After reviewing all of Jim’s options with him, we agreed that making a consumer proposal was best for his situation. Making a consumer proposal meant that he would:

  • Avoid surplus income payments
  • Protect his assets
  • Keep his business operating
  • Pay his creditors what he could afford

In the end, Jim paid his creditors $225 per month for 60 months, amounting to $13,500 of his $44,000 debt.  

Where is he now?

Jim is running a successful restaurant and has hired a bookkeeper to help him with tax filing, as well as making sure he doesn’t fall into the same trap again. Jim was also able to keep his vehicles (all three of them), his RRSPs, his timeshare and his restaurant equipment. He paid off his creditors in 60 months and was quickly on his way to rebuilding his credit and his revenue.

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.