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

Table of Contents

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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I can't praise Cori enough from David Sklar & Associates. Cori's acceptance and understanding of the diverse needs and concerns of her clients shines through with zero judgement. She made this process smooth and relieved much of my stress and anxiety around debt. Thank you!
Karen Swan
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My husband worked with Chen Siga, he walked us through our options and then through the process of getting everything done. Everyone we dealt with was very helpful. Overall a wonder experience, we are so glad we contacted them and got the help we needed.
Amanda Thomas
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I have been surviving on paycheck-to-paycheck basis and could not go any further because the lending interests just accumulated beyond what I can afford. Fortunately, a good friend recommended Grace Cuffaro from David Sklar & Assoc. and I finally got to settle my financial obligations in a reasonable way. Don't go anywhere else; ignore those financial brokers and social media ads who just want more money from you - go directly to the people who can really save you from drowning in debt.
REX ADAME Southern Ontario Canada
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I recently had the privilege of working with Trina at David Sklar & Associates, and I cannot praise her enough. Trina’s commitment to her clients goes above and beyond the norm. Here’s why she stands out:Incredible Knowledge: Trina is well-informed and deeply understands her job. Her expertise shines through as she navigates complex processes effortlessly.Client-Centric Approach: Trina doesn’t just follow procedures; she genuinely cares about her clients. She takes the time to listen, empathize, and tailor solutions to their unique situations.Clear Communication: Explaining financial matters can be daunting, but Trina excels at breaking down each step of the process. Her clarity and patience make even the most intricate details understandable.Availability and Accommodation: Trina’s dedication extends beyond office hours. She accommodates last-minute changes and ensures her clients feel supported throughout their journey.In summary, Trina is a gem in the world of customer service. If you’re seeking debt resolution, don’t hesitate to reach out to David Sklar & Associates—and ask for Trina. You’ll be in capable, caring hands.Thank you, Trina, for making a difference!
Darren Augustin
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Jerry Janiec is very helpful and professional. Thank you.
Urszula Kazula
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Unbelievable people who just want to help and I'm thankful
David Siria
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Jackie is awesome!Thank you for pointing me in the right direction.
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Professional, knowledgeable and people oriented. Unfortunately for me, I had to ask for their assistance a few time and never regret about their service. 5 out of 5. Highly recommended.
Alexander Mikhyeyev
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Jackie Stanley and her assistant Sarah have been so helpful with such an important matter to me and my family. thank you for all your help through this hard period of our lives.
Assia Tiholova
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Trina and her staff were great, excellent job explaining on what will be required of me regarding my situation. Very helpful staff. Would highly recommend Trina and her staff.
Randy Turner
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