Bill & Susan: Debt Management Issues

Table of Contents

‘Bill & Susan’ a Division I Proposal:
Debt Management – More Than a Balancing Act

Bill and Susan E. (not their real names) were a married couple in the Greater Toronto Area whose bad luck and lack of debt management skills had put their family’s dreams in jeopardy. When they first came to David Sklar & Associates Inc they were in their late forties with one child in university, and another in his final year of high school.

Successful in their careers, Bill was an Administration Manager and Susan was a Social Worker. Their combined incomes were over $130,000 per year.

When they came to DSAI they owed over $135,000 on their credit cards, $16,000 on their cars, and $40,000 on a holiday time share. They had no mortgage as they did not own their own home and they had no savings other than a $38,000 locked-in RRSP.

As Bill put it, worry was keeping them both awake at night. They were afraid to answer their phone for fear it was another collector, afraid to open their mail, and afraid that their lives would never be ok again.

Two years before coming to DSAI, Bill’s company had closed down and Bill had lost his job. It took over 18 months before Bill found a comparable job. During those 18 months, the balancing act that had been their debt management plan, tumbled out of control.

Several years before losing his job, Bill and Susan had purchased an older home in the Greater Toronto Area that needed a lot of repair. They had planned on doing much of the work themselves and making a profit when the work was complete. They purchased their home with a 95% mortgage. As the home increased in value – they took out home equity loans to pay for renovations and to pay down some of their debt. At the time Bill lost his job, it was clear to them that the remaining work to be done on the house was beyond their capabilities and finances – so they decided to sell their home. The sale of their home netted them only $12,000 which they used to pay off some of their credit card debt.

One of Susan’s and Bill’s dreams for their family was that both of their children would go to university. To that end, they were trying to pay for all the costs of university to spare their oldest the need to take out loans or get a part-time job. Although their children suspected something was wrong, Susan and Bill were able to hide the harsh reality of their finances.

Years earlier, Bill and Susan had impulsively purchased a holiday time share. Even before Bill lost his job, they had realized that they were not making full use of the time share, but they had kept it in case things changed.

~~~

During their initial consultation at David Sklar & Associates, Bill and Susan laid out their financial situation with their Estate Administrator, Cori Naron. Cori discussed their options with them and they decided to file a Division I Proposal.

A Division I Proposal at that time was used for people with more than $75,000 in debt (other than their mortgage). As of September 2009 that guideline was changed and now people with under $250,000 of debt (other than their mortgage) would file a Consumer Proposal, and people with more would file a Division I Proposal.

Cori worked with Susan and Bill to draw up a Proposal that would be acceptable to their unsecured creditors and doable for Susan and Bill. This meant that they had to review current income and expenses, set up a budget, and identify areas where costs could be reduced. After speaking with Cori, they decided to let go of the time share as well as reduce car, phone and other expenses.

Once the Proposal was filed, collection calls and notices stopped.

The Proposal was accepted by the unsecured creditors. It set up a 60 month repayment plan of $800/month – with the creditors’ total payout equaling substantially less than the actual debt. DSAI fees were included in the $800/month. The monthly payments were made to DSAI who handled the disbursement to the creditors.

Bill and Susan were able to keep their $38,000 locked-in RRSP.

60 days after their initial consultation at DSAI, Susan and Bill returned for their first financial counselling session with Cori. At this point in the process, they were visibly relieved. Without the stress of collectors and knowing they were working toward a definite goal, they were sleeping better and feeling hopeful. They had also sat down with their children and explained what was happening. Their children immediately stepped up and took full responsibility for their own current and future university costs – taking out loans, getting part-time jobs and helping to reduce expenses for their parents. This event proved to be one of the their most positive family experiences, drawing everyone closer together, teaching the children the need to manage debt, and showing them all what could be done when they worked together.

Bill and Susan successfully completed their 60 month Proposal and were released from their unsecured debt. Both of their children graduated from university. With their new-found skills in debt management, Bill and Susan were better able to prepare for their retirement – and continue to sleep well at night.

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, 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. 

Share This!

So over the past few weeks I’ve had multiple contact with Christine. She was simply amazing. She helped me understand my debt and what options I had available to help relive some of my debt stress that’s affecting my own well being and my family.David Sklar and associates is simply put an amazing company and I highly recommend them to absolutely anybody needing help!
Adam Bertrand
1685981146
Christine Sylver was very helpful to my situation. No question asked, she went above and beyond just to give me the options that I need to solve my problems. She explained and made me understand my options. Thank you Christine! Everything was done in a week. Regards, to Richard Sklar for explaining everything further to me. 😊
Kris
1685201109
I was blown away by how kind and empathetic Christine and David were. I came into the process expecting to feel embarrassed, but they were so helpful and unquestionably supportive, they made the whole experience a positive thing. On top of that, Christine found a solution for me that was better than I ever could have imagined. I highly recommend Christine, David, and colleagues to anyone.
Mary M
1684189795
Christine Sylver has been very efficient in working with me in all aspects toward developing a very favourable consumer proposal which meets my financial budgeting very nicely. She also exhibited a very positive pro client attitude and was every pleasant to communicate with. Richard Sklar also demonstrated a very positive pro client attitude in explaining in detail all aspects. All great!!
Rob Hultgren
1683919919
Dealing with Christine was a real pleasure.She was very understanding professional and knowledgeable she answered all my questions.I left feeling relieved a big burden was lifted from my shoulders
John Horan
1683830383
Very happy I got in touch with Jackie! She has been a great help and a pleasure to work with! I highly recommend Jackie if you need help getting out of financial debt.
Hailey Cascagnette
1683647325
I had the pleasure of working with Jackie and she made the experience very easy and was very honest which I appreciated as I was extremely nervous to go through with the process. Any questions or concerns I've had after our meetings were answered no problems and although it's been a few weeks I can honestly say I've never felt so stress-free. Very thankful for Jackie.
Cassandra Arevalo
1683644364
Very considerate of how people can sometimes make mistakes and need help to get things back on track. Great team of people. Thanks to Jacqueline for all her help.
Kevin Chase
1683498014
My mother told me about this firm because they helped resolve her situation nearly 25 years ago. I had the pleasure of working with Christine Sylver. I should’ve done this years ago but I am where I am and it is what it is. Extremely courteous, professional and understanding. I hope to never need their services again but they would be my first call! A+
Patrick Martel
1683324165
Jerry was extremely thorough and ensured that as a client, I understood all of my options and their repercussions. He offered his professional advice best suited for my situation and he is amazing at his work. Thank you Jerry! :)
Stephanie Belanger
1683317517
js_loader
DS david skalr icon

Book your free consultation.

Call 1-844-962-9200 or fill out the form below. We’ll do the rest.

Contact Us