Paul & Nancy: Stop Aggressive Bill Collectors

‘Paul & Nancy’ a Case History: Stopping Aggressive Collectors with a Consumer Proposal

Paul (not his real name) was a successful Computer Hardware Engineer who had been working at a leading technology company for over 10 years. Earning over $85,000 per year, Paul was able to provide the ‘good life’ in Toronto for his wife Nancy (not her real name) and their three children with a nice home near excellent schools, organized sports for the kids, frequent family holidays, and Nancy’s ability to be a stay-at-home Mom.

Unfortunately, Paul’s company was closed down when a prolonged drop in the market for their specialized products pushed the company into bankruptcy. As a result of his specialization and an industry-wide glut of professionals with the same qualifications – it took Paul nearly two years to find a new job. His new job paid less than half of what his old job had been paying, but it offered an opportunity to move forward and increase his income in the future.

During the two years that Paul was out of work, Nancy had been able to find a part-time job working in a nearby day care – but their income was still far below their needs. As a result, they used credit to keep their household going. By the time Paul began his new job, they had run up their six credit cards to $32,000 and maxed out their bank line of credit at $38,000.

To make matters harder, Paul had been unable to make payments on several of his credit cards and a judgment placing a garnishment (aka garnishee) on his wages was put in place. Creditors began calling him at work with such frequency that his Manager had spoken to him about the calls. In near panic mode, Paul realized that if something wasn’t done to fix his financial problems, his performance at work would deteriorate and he might lose his new job.

When Paul and Nancy came to David Sklar & Associates they had – $32,000 in credit card debt, a $38,000 bank line of credit debt, and $2,200 owing on a Payday Loan. Their home was carrying a high mortgage and only had $6,500 in equity, their car was 9 years old with a very low resale value, and their combined net income was $3,850/month (Nancy continued to work part-time earning a net monthly income of $750 after Paul began his new job).

At their initial consultation, Jason Sklar (their Estate Administrator) reviewed Paul and Nancy’s current financial situation with the couple. It was evident that Paul was very worried about the effect that the garnishment and collection calls were having in his work place. Jason discussed their options with them – and they were very pleased to learn that a Consumer Proposal could (if accepted by the unsecured creditors) result in their:

  • keeping their home,
  • stopping the collection calls,
  • removing the wage garnishee,
  • paying back some of their debt, and
  • avoiding Bankruptcy.

Paul was also very pleased to hear that if their income increased during the time the Proposal was in place, that it would not affect or change the agreement.

Paul and Nancy worked together with their Trustee to create a Consumer Proposal, and a budget for the family. Because Paul and Nancy wanted to keep their home and the creditors would be looking to for a Proposal that offered more than a Bankruptcy would, they accounted for the $6,500 home equity in the amount they offered. At the Trustee’s recommendation, the creditors accepted the Proposal. The Proposal was set up for monthly payments of $650 to be made to David Sklar & Associates for disbursement to the creditors – and was to run for a period of 60 months.

With the garnishment lifted and the collection calls stopped, Paul was better able to focus on his new job and within a few months he received his first salary increase.

One of the duties that Paul and Nancy accepted under the Proposal was to attend two financial counselling sessions. During their first session, Nancy had some news for Jason. She explained that all three of her children were in their teens when she first started working outside the house and everyone had managed quite well. So, the whole family had agreed to her working full-time at the day care to pay down the Proposal faster – and had also agreed to help out more around the house. Paul expressed his surprise at how agreeable and almost eager the kids had been to help the family through this challenge. Although he would still rather that he had not lost his job in the first place – it appeared that as a result, the family was closer and stronger than it had ever been.

With Paul’s increasing wages and Nancy’s improved income, they were able to complete their Proposal in 36 months rather than in 60. They were discharged totally from their unsecured debts and began their ‘fresh start’ – with their new understanding that the ‘good life’ is when families pull together.

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

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I cannot emphasize enough how thankful I am for Jackie Stanley's help with filing for bankruptcy.All of us dread being put in this position and we have a million questions about the process but trust me Jackie makes it so easy for you that you don't have to do anything yourself!She is very kind and friendly and puts you at ease right away. She emphasizes with you and let's you know it's not your fault.Most importantly when you leave that first meeting you will not believe the load that is taken off your shoulders. You can actually feel it!You are a godsend Jackie and I can't thank you enough!!I hope you are highly valued there as much as you are by me!
Sue Murray
18:45 05 Dec 21
Putting together and executing a Consumer Proposal can be daunting, that is unless you work with Cori Naron at David Sklar & Associates Inc. Cori's advice and support has been instrumental over the past five years. Thank you Cori!!
Barry Kuntz
20:37 01 Dec 21
I’m very happy with the services I received for Jackie Stanley who helped me get my finances in order. It was a quick and easy process & all of my questions were answered.
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01:18 19 Nov 21
I have had the privilege of being supported by Jackie at David Sklar Associate. She was very helpful, very professional and very friendly. She gave me the help I need. Thank you Jackie for your help.
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22:03 17 Nov 21
Got my probe solved, great service
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17:02 11 Nov 21
Jackie at Daivid Sklar and Associates is such a pleasure to work with. She explained everything in great detail and is always there when I have a question or concern. She really cares about her clients.
Steve Medica
09:33 10 Nov 21
I filed a proposal with another group, which came in as a referral from one of my brokers. My experience went from ok to bad to worse, due to lack of communication and education on the process I was to embark on. I worked with Cori Naron in the past, and I came to her now for help on literally doing the work that the other group should have done. Cori stepped in, educated me, advised on rights, responsibilities, how the process works and what potential outcomes may happen. I do not have enough words of recognition and gratitude for what she did - she alleviated stress, anxiety, dead-end thoughts and she made me live again. Congrats to DSklar for hiring her and retaining such talent.
Giani Kokolakis
18:45 25 Oct 21
Very professional service. Before contacting David Sklar & Associates i contacted bunch of other firms they seemed fishy. After I spoke with Jason Sklar at Hamilton Office I discovered professionalism with hope. I was explained every step of my situation with solution professionally. Thank you David Sklar & Associates.
Wajay Awan
07:29 12 Oct 21
I met David a few months ago and i am glad I did. He has helped me all the way through my bankruptcy with good advice and explained every step of the process. David is a very down to earth and very professional. Anytime I've had a question I was able to reach out to David by phone or email and he always got back to me. If your struggling with your bills and need a way to get help, I strongly recommend David Sklar &Associates to help you. My experience with them on 1-5scale would be a 5;; My life is so much better now, thanks to David Sklar.
Bruce Locke
16:13 08 Oct 21
I have had the privilege of being supported by Jackie S, at David Sklar n Associate.She was helpful, professional and friendly. I was able to get the help I needed at a difficult time in my life. I would recommend anyone who needs support with working out their debts to ask for Jackie, she will be waiting to assist however she can to help you through your debts. She works with a team who is always ready and responsive.Thank you Jackie and your team:)
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