Consumer proposal case study: Poor health and the impact on your finances

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In her mid-50s, Pamela (not her real name) suffered a severe emotional loss.

During the next few years, she tried to fill her sense of emptiness with shopping, expensive gifts to family, and travel.

Pamela earned a reasonable income – but her out-of-control spending began to put her into serious debt.

Her and her husband took out a second mortgage against their home to pay off her debts – but she continued to spend.

She cashed in her RRSP’s to pay off her debts – but she continued to spend.

And then, within a three-month period:

  • Pamela’s husband’s health failed and he was no longer able to contribute to the household income.
  • Pamela, who had wanted to work past 65, was facing imminent retirement due to her own poor health.

With nothing left to cash in and debts continuing to pile up, Pamela became desperate. Finally, accepting how serious her situation was, she got in touch with a grief counselor and an accountant.

The counselor helped Pamela to begin her emotional recovery.

The accountant advised her to contact David Sklar & Associates to begin her financial recovery.

Here is how David Sklar & Associates was able to help with Pamela’s debt

Pamela met with a Licensed Insolvency Trustee at David Sklar & Associates, to discuss her situation and find out what her options were. At the time of their meeting, Pamela owed the following unsecured debts all of which were in her name only:

 Credit Cards:$38,000
 Bank and Other Loans:$3,700
 Reveune Canada:$2,000
 Total Unsecured Debts:$43,700

Her home had no equity – her and her husband had ongoing medical expenses – she had no assets beyond those exempted from bankruptcy in Ontario- and her monthly income (the only income for the household) was about to plummet to under $2,500 per month.

Pamela was eligible to file for bankruptcy – however, she wanted to pay back at least some of her debt. After discussing her situation with her Licensed Insolvency trustee, she decided to file a consumer proposal.

Her proposal of $255 per month for 60 months was accepted by her creditors. At the end of the successful completion of her consumer proposal, she will be released from her unsecured debts. In the meantime, her creditors must not contact her or charge her any interest.

Here is how much Pamela was able to save after filing a consumer proposal

The Consumer Proposal payments: $255 a month for 60 months.

Pamela paid $15,300 on debts totaling $43,700 – saving $28,400 and a reduction of 65%.

Pamela believes her journey to emotional and financial recovery will take time and real effort on her part, but she believes that it is doable. And if her early efforts at recovery are any indication, she will make it.

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

David Sklar & Associates is here to support your financial recovery

Learn more about how we can help you find debt relief with a consumer proposal or personal bankruptcy.

Our passionate and experienced team at David Sklar and Associates has helped thousands of individuals achieve debt relief. Our experts can answer any questions about your debts and recommend a solution based on your unique needs and goals. Let us help you pave the way for a brighter financial future, starting with a free, no-obligation consultation.

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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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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Christine and her team are amazing and professionals. I called for help and she responded right away to help me.thank you and I really appreciated for everything you do.
Marcelina Sunas
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Thank you so much for the helpYou took away the most stressful things in our lives which was our dept you guys are amazing and would recommend you to everyone
Kaitlyne Sunas
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The staff here are fantastic (Cori handled my visit) and are willing to go above and beyond to help people who need help, I recommend them 100% for people who are looking to move on in good standing.
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