‘Mary’ a Case History:
Small Mississauga Bankruptcy – Big Relief
Some of the case histories we present in these blogs are about people who are hundreds of thousands of dollars in debt. However, many of the people who file for bankruptcy owe much less. One such person was “Mary” (not her real name).
Mary lived in Mississauga, was in her late 30s and receiving monthly ODSP (Ontario Disability Support Program) payments of $1445 when she first came to David Sklar & Associates. In addition to paying for rent, food and the basics of life – she was trying to pay off two credit cards that she owed $15,000 on.
Despite her best efforts, she could not make the minimum payments and eventually her credit card debts were sent to collection agents. The aggressive nature of these collection agents, and their flat refusal to accept anything other than full payment, put unbearable stress on Mary.
During Mary’s first meeting at David Sklar & Associates, she spoke with Richard Sklar, Estate Administrator – who discussed her options, and gave her the first ray of hope she had had in years. He explained to her that she could file for a Consumer Proposal or she could file for Bankruptcy. No matter which of those two options she choose, the collection agents would have to stop contacting her once the process was filed. Mary’s reaction was relief, she had been trying for so long to deal with her situation without any hope, and now she could see the possibility of a better life.
After reviewing her finances with Richard, Mary decided to file for Bankruptcy, as she did not have enough income to be able to commit to a Consumer Proposal. Although a Bankruptcy would be on her credit history for seven years after she was discharged, Mary felt her credit rating was already so poor, it would not make much of a difference.
Mary was pleased to learn that because she did not have surplus income and it was her first Bankruptcy, her Bankruptcy would only last for nine months, and she would not be required to pay more than the base monthly fees.
During her discussions with Richard, she learned that once she was discharged, there were things she could do to rebuild her credit rating.
Now confident of a brighter financial future, Mary’s ‘small’ bankruptcy gave her the life-affirming relief she so desperately needed.
To protect our client’s privacy, aspects of this case study have been altered.