The Rebecca Martyn Bankruptcy Windsor Blog

I received an email from someone yesterday asking if he could file a consumer proposal with us.  He had filed a consumer proposal in 2005 year with another administrator and over the next 12 months, he missed 3 months of payments because of a reduction in income.   As he knew, once you miss 3 monthly payments under the terms of the proposal, it is deemed annulled, meaning it has now ended.  

He now has a steady source of income and wanted to file another consumer proposal.  I had to let him know that it isn’t easy as that.  In order to file another consumer proposal he first needs to obtain court approval.  This can be done with the assistance of a lawyer who specializes in insolvency.  I told him to contact us once he has the court order and we will be happy to help him file another consumer proposal.

If you need a plan to deal with your financial problems, call us at 310-PLAN or email your question.

A short time ago I met with Walter and Ruth in Windsor (not their real names).  They are both in their late 60’s.  Walter had worked for many years in a skilled trade and Ruth was a home maker.  Walter retired 3 years ago and his sources of income are his company pension and CPP.  He is bringing home around two thirds of what he was bringing home when he was working.  He had considered returning to work, but is concerned about what affect this might have on his health.  They are now starting to get behind on their credit card bill, collection agencies are calling and they called Hoyes Michalos to find out what their options are.

It is easy to understand their financial difficulty.  Their income has been reduced; however their living expenses are still the same as what they were when Walter was working.  For the past 3 years they have tried really hard to stay current on their credit card bills, but now the stress of the situation is too overwhelming.

They came in to see me and together we reviewed their budget and their debts.  When they came in to see me their credit cards totaled $30,000.  We discussed the advantages and disadvantages of a consumer proposal and bankruptcy.  They decided to file a consumer proposal in the amount of $15,000.  It has recently been accepted by their creditors making Ruth and Walter very happy.  Their stress has already decreased and they can now look forward to a happy retirement. 

If your income has been reduced and you need a plan with deal with your debts, call us at 310-PLAN or email your question.