Consumer Proposal for an Independent Toronto Man
Stewart (not his real name) at 50, was where he wanted to be in life.
He lived alone (by choice), in a modern two bedroom condo in Toronto that he had bought five years earlier and that would be completely paid for by the time he was 65. His job as a construction labourer, was the type of labour-intensive work he had enjoyed doing all of his working life.
He was a fiercely independent man, who believed in pulling his own weight.
In many ways, Stewart at 56 is a different man.
Coping with a crippling illness, he was forced to sell his condo when he could no longer afford the mortgage, and is now living in government assisted housing. Unable to work at any job because of his illness – his severely reduced income is just over a thousand dollars a month and comes from CPP and ODSP.
But, he is still a fiercely independent man, who wants to pull his own weight.
This independence was evident when he met with Jason Sklar, Estate Administrator for the first time.
During that first meeting Jason and Stewart reviewed his finances:
No Assets
Monthly income $1,050/month (CPP and ODSP)
No Secured Debts
Unsecured Debts:
- $1,700 to two utilities (Rogers & Ontario Hydro),
- 3 credit cards at a total of $4,500 and
- $2,000 in overdraft with his bank.
Stewart was eligible to file for bankruptcy, and it would have been easier for him to do to – but he chose to go with a Consumer Proposal of $100/mo for 5 years. This was not a careless decision, Jason and Stewart carefully reviewed his finances, situation and expenses before making the offer.
Realizing that Stewart did all of his banking with the same bank that held his overdraft, Jason advised Stewart to set up a new account with another bank. That way, his old bank would not be able to put a freeze on his account.
Stewart’s proposal was accepted by his creditors, and while it will be a few years before it is finished – there is every expectation that Stewart will successfully complete his proposal.
The net results of Stewart’s decision to file for a consumer proposal – his creditors will get more money than if he had gone into bankruptcy – but more importantly to Stewart, he is able to show himself that he is basically the same independent man he always was.
To protect our clients’ privacy, details of this case have been altered.
