Parmenia: Gaining Control, Consumer Proposal in Scarborough

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Scarborough Consumer Proposal – Parmenia’s Balancing Act

Parmenia (not her real name) was a 51 year old mother of two who was drowning in debt. When her marriage had ended 11 years previously, she had been left with very little. In fact, after the divorce settlement she had just barely enough money to move herself and her children into a small, Scarborough townhome rental.

Fortunately, she had a good job with the company she had started working for when she was 20. By taking night courses and learning everything she could about her industry, Parmenia had worked herself into the position of Chief Accounting Clerk.

After her divorce, Parmenia found that she was relying more and more on credit. Over the next 10 years, she was always very careful to make at least the minimum payment on her credit cards, but eventually she maxed out her credit cards and began to look elsewhere for credit. Her bank gave her a personal loan to pay down her credit cards, but within a year, she had maxed out the cards again.

Parmenia became an expert at juggling her minimum credit card payments, bank loan, and bills. While she keep excellent accounting records at work and balanced everything to the penny – at home she was always in the red.

Her balancing act took a major hit when she was forced to take three months off work due to illness. Covered by long-term disability insurance that only paid a portion of her normal pay – she became desperate for more credit, to keep the act going.

Against her better judgement, Parmenia took out a high-interest personal loan with a high-risk lender, as no one else would lend to her. A few weeks later, when her car broke down, she took out another high-interest personal loan with a second high-risk lender.

When she was finally able to return to work, she was in a financial mess.

It was obvious that she could not make all the payments she was balancing, but when she missed two payments to one of the high-risk lenders, she suddenly realized how dangerous her situation had become. Unlike the ‘friendly reminders’ she had received from her credit card companies, the high-risk lender was threatening to put a garnishee on her wages. A garnishee on the Chief Accounting Clerk’s salary, would not be acceptable to her company.

Parmenia knew she needed to take immediate action to get this under control – she called David Sklar & Associates for an appointment.

~~~~~~~~~~~~~~

At her initial meeting with Richard Sklar, Estate Administrator, Parmenia reviewed her financial situation in detail:

Monthly Net Income: $3,100
Credit Card Debt:$21,500
Bank Loan:$8,500
High-Risk Lender Loans:$12,000
Cell Phone Bills: $3,000
Total Debt: $45,000

 

No Assets in excess of the exemptions permitted in the Ontario Exemption Act and the Bankruptcy and Insolvency Act

After discussing all her options with Richard and the Trustee, Parmenia chose to file a consumer proposal.

Although she knew she was only at the start of the process – making the decision to file, gave Parmenia a sense of relief and hope that she had not felt in years.

David Sklar & Associates filed the consumer proposal and presented it to her creditors to vote on. The proposal was accepted.

It is important to note that the moment the proposal was filed, Parmenia’s creditors were required to stop charging her interest and to stop all collection efforts (including calls, legal action and garnishees).

Parmenia’s consumer proposal was for $365/month for 60 months. During that time she is to attend two credit counselling sessions and honour the terms of her proposal. At the successful completion of her proposal she will be released from her debts.

Although she has not yet completed her proposal, there is every reason to believe she will be successful.

Parmenia is enjoying not having to juggle payments, and honestly feels that she is on the right track to a better financial future.

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

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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.
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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.
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12:21 16 Nov 22
Recently dealt with Christine at David Sklar & Assoc. and worked out a Consumer Proposal to put forth to my creditors for my Credit Card debt. She was very courteous, professional and put me at ease with a proposal that I can afford on a monthly basis, which will eliminate my debit in a reasonable timeframe. I would recommend Christine and this firm in a heartbeat. Very happy with the service and attention I got !!
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After seeing your commercial play on CP24, I realized that it addressed all the questions and concerns I had about my financial situation. It all started with my one phone call to your office. I had the extreme pleasure of working with Cori Naron at your St. Clair West office in September 2022. She took the time to explain what my options were knowing that it was a very stressful situation with my debt load. She made me feel at ease with my decision to file a consumer proposal and outlined the benefits to me. She is thorough and her attention to detail is outstanding. While it takes a little while to reap the benefits of making this hard decision, she took the time to reassure me that it was in my best financial interest. Well done David Sklar & Associates for having such an amazing representative at your company and for allowing me to "get a fresh start"!
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Very highly perfection individual, well executed and greatly knowledgeable in his work, which guided me me the right decisions making opportunities. Thank you.Sincerely, Peter Romasz
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