Melisa: Co-signing Loan Dangers & Bankruptcy in Mississauga

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Bankruptcy Mississauga – Family Stress

The following Mississauga bankruptcy case history is an excellent example of some of the problems that can be caused by co-signing loans.

‘Melisa’ (not her real name) was a hard-working, bright woman in her early 20s. Ambitious to have a successful career, she had returned to school and taken a two-year business course. Unable to get student loans to finance her education, she had taken out a student line of credit with her bank – which her mother co-signed.

Although she had done extremely well with her studies, when she graduated, she was unable to find a job in her new field for over a year. She was able to get some temporary work while looking for full-time employment, but it was not enough to enable her to keep her payments to the bank up to date.

Collection Calls & Possible Garnisheed Wages

Shortly after she found a job in her new field, while she was still in the 3-month probationary period, her bank began to make collection calls, threatening to place a garnishee on her wages. In addition, her bank began to call her mother ‘Joanne’ (not her real name) , who as the co-signer, was also responsible for repaying the debt.

Melisa was panic stricken, she realized that her employer would take a very dim view of a garnishee, and it could result in her being let go before her 3-month probationary period was up. She also was concerned about the damage this stressful situation was taking on her relationship with her mother and her mother’s fragile health.

Taking the next Step

On the advice of a friend, Melisa set up an appointment with David Sklar & Associates at their Mississauga office – to see what could be done.

During her initial meeting with Rhoda Lewis, Estate Manager – Melisa laid out her finances:

  • Income: $2000/month
  • No assets beyond those exempted from bankruptcy by the Ontario Execution Act
  • Total Credit Card Debt $1,200
  • Co-signed Loan – $8,000

After Rhoda and the Trustee explained all of her options to her, Melisa decided to file for bankruptcy rather than file a consumer proposal – as she was concerned about her ability to pay a proposal if she was unable to keep her new job.

Since Melisa did not have any Surplus Income, as per the guidelines from the Superintendent of Bankruptcy, she qualified for a 9 month bankruptcy.

Before filing for a bankruptcy, Rhoda recommended Melisa open a bank account at a different bank, and have her paycheques deposited to the new bank account. Since Melisa did all of her banking with the bank she had her line of credit with, it would be prudent to start using a different bank.

Once David Sklar & Associates filed her bankruptcy, Melisa’s bank had to stop all collection efforts against her.

Fallout for Melisa’s Mother

After Melisa filed for bankruptcy, her bank continued to aggressively pursue her mother, Joanne, for repayment of the line of credit loan. As a co-signer, Joanne was 100% responsible for repaying the entire loan.

Unfortunately, Joanne’s financial situation was already precarious due to a recent illness, and she was experiencing difficulty meeting her own outstanding debts. With no other viable option, Joanne filed a Consumer Proposal – which stopped the collection efforts of the bank, and eased her financial stress.

Aftermath

Although the relationship between Melisa and her mother improved with time, the stress they both experienced has not been forgotten.

To protect our clients’ privacy, aspects of this case study have been altered

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt, call us at 1-844-962-9200 to book a FREE, confidential appointment. We will review your financial situation in detail and discuss all of your options with you. Alternatively, you can fill out the form below and our team will reach out to you. 

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Great experience i was in financial trouble and someone of my friends recommended this company. Cori is a wonderful and welcoming person she did a very good job and came up with a smooth and flexible monthly payment after the reduction. i highly recommend this company. Thank you David sklar and special thanks to Cori.❤️🙏🏻
Jasmine Joseph
22:08 13 Jan 23
Met up with Mr. Jason Sklar to discuss more in person, very thorough and clear. He is very kind and thoughtful, I will be referring anyone with the same situation to David Sklar & Associates.
Ariel Domingo
02:33 29 Dec 22
I was a reck talking yo Jason Sklar was easy comfortable he explained everything and put my mind at ease I would recommend the team od sklar to everyone. I have already talked to my ci workers about them
kevin mcweeney
01:13 22 Dec 22
The team at David Sklar & Associates is fantastic.I worked with Jerry whom not only made - what seemed like intimidating process to initiate at first - comfortable.He made everything transparent and took the time to explain the process every step of the way.He was kind, attentive, and professional. Everything was made straightforward and stress free and we found a solution together that worked.Thanks to Jerry and the team.
Jordie Angiolillo
18:22 21 Dec 22
From day one till the end which is today😁 DavidSklar gave me a 5star service and treatment. And I will 100% recommend him and his Associates. This is the best Christmas present ever! Thank you David! More business to come! Merry Christmas and a Happy New Year!!!
barbee diaz
16:37 16 Dec 22
I FOUND DAVID SKLAR & ASSOCIATES BY GOOGLING "BANKRUPTCY" (EARLY NOV. 2021). ON NOV.4, 2021 I HAD A MEETING WITH CORI NARON AT HER OFFICE AT ST CLAIR ANDBATHURST. HER POSITIVE APPROACH TURNED ASTRESSFUL SITUATION INTO A STEP BY STEP UNDERSTANDABLE PROCESSON SEPT. 23, 2022 I OBTAINED MY AUTOMATICDISCHARGE FROM BANKRUPTCY AND MY CERTIFICATE OFDISCHARGE.THANK YOU CORIBRUCE BURGESS
bruce burg
21:35 02 Dec 22
Jerry was wonderful and provided superb service. He is very knowledgeable, trustworthy, and made an intimidating and shame filled time in my life stress free. I hesitated for a long time to take the next step, but Jerry answered all questions, was patient and made the process effortless. I am eternally grateful, and highly recommend Jerry’s services.
M J
18:41 01 Dec 22
Jerry was professional and was easy to deal with
Debbie Asquith
00:09 29 Nov 22
I was quite nervous and a little embarrassed that I needed financial advice. I met with Jerry Janiec and he was very helpful. He made me feel comfortable and explained everything in easy to understand terms so that I understood what my options were. I would recommend David Sklar & Associates for anyone in my position.
Melissa Blackburn
19:53 17 Nov 22
I was fortunate enough to be referred to David Sklar & Associates Inc. by a family member. Now in the10th month of a Consumer Proposal process, I am very impressed with the organization, professionalism and impeccable customer representation that I have experienced. To this effect, I amparticularly thankful to Jerry Janiec and Rhoda Lewis for their excellent work.
Suzanna Vaclavik
12:21 16 Nov 22
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