Case Study: Financial burden after an injury

Table of Contents

A car accident changed everything

Life had been good to Susan and Bob (not their real names). They had successful carers, three wonderful grown children and a lovely home in Pickering.

And then, it all changed.

At 53 Bob was in a car accident that resulted in a serious spinal injury – requiring extended hospitalization, multiple surgeries, and years of therapy.

While Susan was initially able to take time off from work to be with Bob, eventually she had to give up her job and focus full-time on Bob’s recovery.

Bob had insurance, but it was not sufficient to cover all their costs. As a result, during the first 3 years following the accident – they used up their savings, cashed in their RRSPs, took out a second mortgage, ran up an unsecured line of credit, and maxed out their credit cards.

Their adult children stepped in and began paying their mortgages. While Bob and Susan were grateful, they hated being a burden to their children.

Even with the mortgages being paid by the children, Susan and Bob were unable to keep the credit card payments current. They began receiving collection calls that added stress to their already stressful lives – so they decided to see if they should file for bankruptcy.

All three of their children expressed concern over their parents losing their home (even though there was no equity left in it), and were deeply worried about how declaring bankruptcy would affect their parents’ self-esteem. They made it very clear to Bob and Susan that they were able and willing to continue paying the mortgages for as long as it took.

Susan and Bob set up an appointment at David Sklar & Associates to explore their options.

How David Sklar & Associates helped

They met with Jackie Stanley, an experienced and caring Estate Administrator, who reviewed their finances and options. Bob and Susan were delighted to discover that they might be able to file a consumer proposal, which, if accepted, would stop the collection calls, enable them to keep their home (as long as the mortgage payments continued to be paid), pay off a portion of their unsecured debt – and avoid bankruptcy.

At the time of the meeting they had no assets beyond the basic exemptions, had a monthly net income of $2,000 from insurance, and had the following unsecured debt:

Credit Cards:$41,850
Line of Credit:$21,500
Total Unsecured Debts:$63,350

They reviewed their options with the trustee and decided to make a consumer proposal to their creditors. They offered to repay a portion of their $63,000 of unsecured debt in 60 monthly payments of $335. Their offer was accepted by their unsecured creditors.

One year into their consumer proposal, Susan was able to return to work and take over the mortgage payments from their children. Bob eventually found part-time work that enabled them to speed up the repayment of the proposal.

Being able to avoid bankruptcy and stop the collection calls, made a major difference to both Susan’s and Bob’s ability to cope and get on with their lives.

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

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I was a little nervous going into my consumer proposal with David Sklar & Associates as I had a horrible experience attempting to file with a different group.Following the first correspondence, I immediately felt much more relaxed and confident in my decision.Beatriz was incredible! I feel so lucky to have had her working with me.She was friendly and kind, professional, patient, considerate, and caring. I felt no judgment in anyway. Honestly, speaking with her regarding my debt felt like I was speaking with a family member – just very easy to discuss how I ended up in my financial situation and being met with understanding, no judgment.Mark was also very kind and made sure that I understood what was discussed and was open to going over it again if needed prior to signing.David Sklar & Associates is the team you want handling and assisting you with your debt. I have only positive things to say about them and will 100% recommend them to anyone if the situation ever arises.
ally.
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Helped me with filing for bankruptcy and getting a fresh start and made the whole process seamless and easy.
Sameer Kamal
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I would like to say "Thank you very much" for David Sklar team that handled my case smoothly and without any issues! I am glad that I ve got consultation by Jerry Janiec. He explained me all process in details and told me right away what options I do have to resolve financial difficulties. I ve proceed with consumer Proposal option and entire process was very smooth. Jerry took care of my case and gave me personal recommendations for future! Thank you very much Jerry and Hernee for your help and really take care of your clients!
Alexander Arepyev
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Very knowledgeable, helpful and fast service
Anthony Mcfeat
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I am so delighted to have found this company. They are the best. Everyone in the office is very nice never to busy to assist you. Thank you David Sklar and Shirley and associates for being you. 😊🌺😊
Deborah
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Trina was amazing and quick. No judgement was made and they all made me feel I made the right decision. Would highly recommend them
Crystal Minaker
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Trina was very easy to work with. Any questions I had were answered promptly. What seemed like a complicated process was explained in a clear manner that wasn't at all intimidating. It made for a more comfortable experience during a turbulent time.
Eldon Aubie
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Jackie is very professional...I would recommend David Sklar to anybody especially knowing how understanding they are.
Kimberley Lyder-Niles
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I had Shirley and Kim take care of my finances. From the very first moment I spoke with Shirley I could sense how caring, professional and patient she was. She was also very understanding with my lack of financial knowledge and never made me feel dumb as some other companies have.Her and Kim were always very quick to respond to emails, always available if I called and answered my abundance of questions in such detail that I now believe I have a thorough understanding of how finances work. I am hopeful about my fresh financial start and very grateful I had the privilege of meeting and working with these two beautiful women.I also spoke briefly with Richard over zoom and he to was extremely friendly, patient and made sure I was well taken care of.I could not recommend David Sklar and Associates more. Thank you again.
Shayleen Muzi
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Good professional team! Jennifer is the best, helped me through everything and answered all my questions. Made the process easy! Would recommend Jennifer and the team at David Skylar.
gary round
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