Stan & Michel: A Consumer Proposal for Debt

Stan & Michel – Consumer Proposal

Stan and Michel (not their real names) were well educated professionals with successful careers in the Toronto area. With one child, a lovely home and a promising future, their lives were on a sound footing.

When Stan’s company went out of business, they expected that Stan, given his education and excellent work history, would be able to find another job quickly. However, weeks turned into months and despite his best efforts, he was unable to find a suitable job.

Fortunately, they were able to make their house payments and take care of most of their bills with Michel’s salary, but they were sliding into debt.

Job Loss & Medical Issues

Then, 11 months after losing his job, Stan was dealt another blow – he was diagnosed with a serious medical condition that required surgery and a lengthy recovery. During this time, their bank, when renewing their mortgage, insisted that Stan’s name be removed from the title of their home.

Although Stan and Michel did their best to remain optimistic, Stan’s prolonged health issues and unemployment were increasingly difficult to cope with.

After nearly 5 years of unemployment, it was clear that if their finances remained as they were, they would have no savings for their daughter’s education or their retirement.

Although Michel’s salary had been able to make the minimum payments on Stan’s credit cards and unsecured bank loan – they were not able to pay off his debts. After much discussion and thought, they decided to contact David Sklar & Associates to see what could be done.

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During their initial appointment with David Sklar & Associates, they met with Estate Administrator, Trina Powell and reviewed Stan’s finances in detail:

Monthly Net Income: $0
Credit Card Debt 2 Cards: $19,500
Unsecured Bank Loan: $31,000
Total Unsecured Debts: $50,500

 

All of Stan’s debts were in his name only, and as such, Michel was not responsible for them.

Stan and Michel’s household annual income was $65,000 per year. Stan was not on their home’s title and had no real assets beyond the exemptions allowed in the Ontario Execution Act.

After reviewing all of his options with Trina and the Trustee, Stan decided to file a Consumer Proposal, which would enable him to repay some of his debts. His proposal was accepted by the creditors, and was to run for 60 months with monthly payments of $315. At the end of the proposal, Stan would be released from his debts.

Credit Counselling & Managing Money

One of the conditions of his proposal, was that Stan attend credit counselling. Both Stan and Michel came to his first session. Stan was understandably upset over his situation, but he confided in Trina that after he had made the decision to file a proposal, he had gotten his first good night’s sleep in ages. While Stan and Michel had already been economizing for several years, they were able to come away with some additional ideas on how to manage their money.

Several months into his proposal, Stan contacted Trina to let her know he had restarted his job search and had found a job. While it was not at his previous salary level, there was the possibility of promotion, and it was in a field that he enjoyed. Note: once a proposal has been accepted by creditors, a subsequent increase in income does not alter the terms of the agreement.

Stan and Michel are still in the process of completing Stan’s proposal, but there is every reason to believe that this devoted couple, will successfully complete their proposal and rebuild their family’s financial stability.

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

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt and live in the Toronto area, call us at 416-498-9200 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 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.
Amanda Frappier
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.
Alex Taylor
22:03 17 Nov 21
Got my probe solved, great service
arny raposo
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:)
Denise Simpson
15:17 09 Sep 21
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