Some files and testimonials

Our Files and Testimonials

Julie, thanks again for all the help from you and you and Mr. Rowan in putting my life back on track.  I really appreciate it.  God Bless.

Some Sample Files

Couple with irregular income and high debt

We are so grateful for your kind, nonjudgmental approach to helping us find a way out of our debt.  We have enjoyed working with you, and would like to thank you again for all of your help, guidance, and support.  Also for your patience.  What a relief to have this process over and begin building our savings rather than debt!

Couple with $129,000 of credit card debts

A hard working couple found themselves way offside with their credit cards used to raise their two children, now teenagers.  At risk was an RESP with a liquidation value of about $20,600.   We devised a joint consumer proposal for them.  They will pay $600 monthly for 60 months for a total of $36,000 – an estimated 28% of their debts, and they will keep their RESP intact for their children’s education.  With no additional fees.

Income tax debt of $62,600 plus $159,000 of credit card debts

Following severe health issues this self-employed fellow’s income could no longer meet both living expenses and full debt payments.  After a lengthy recovery period he returned to work with damaged credit and a collector from Canada Revenue Agency pursuing him.  He chose to avoid bankruptcy and make a proposal to his creditors.  We devised a consumer proposal for him.  He will pay $500 monthly for 60 months for a total of $30,000, an estimated 13.6% of his debts.  With no additional fees.

Over $136,000 of lines of credit, bank loans and credit card debts

It is pretty well impossible for a small business to obtain financing without putting their personal names on the line.  This couple operated an unsuccessful retail business, funded by their credit cards and personal lines of credit.  They needed our help.  They could afford a small monthly payment from their new employment income and they preferred to avoid bankruptcy.  They chose to make a proposal to their creditors and they asked us to devise a plan for them.  They will pay $250 monthly for 60 months for a total of $15,000 – an estimated 11% of their debts.  With no additional fees.

Over $67,000 of credit card debts

This computer techie bounced between different jobs and unemployment while he tried to establish his own business which eventually turned out to be unsuccessful.  For a long time he used his credit cards to meet bill payments and his living expenses.  He required our help and we devised a plan for him.  He will pay $375 monthly for 41 months under a consumer proposal which equates to $15,375 or an estimated 23% of his debt.  With no additional fees.  A key benefit to him is that because this restructuring is a consumer proposal and not a bankruptcy, he completely avoids needing to disclose a bankruptcy status to his business associates.

$40,000 of lines of credit and credit cards

This family man, a father of two, moved.  The costs of his relocation and a period of unemployment were funded by his line of credit and his credit cards.  He now has a solid job and when he met us he was concerned about losing his RESPs, his car, and the equity in his new home.  He required our help and we devised a plan for him to restructure his debts.  He will pay $450 monthly for 58 months, an estimated 65% of his debt.  No additional fees.  If he had chosen bankruptcy, he would have lost most of the equity in his home and his RESP for his children.

This 65% is unusually high compared to most consumer proposals because the actual cost in a consumer proposal is a function of the payback creditors would receive in a bankruptcy scenario which, on this file, was an estimated 53%.

$148,000 shortfall on a foreclosure, income taxes, and credit cards

This previously bankrupt, self-employed businessman experienced health issues, medical leave, lower income, part-time job loss, and poor budgeting.  And he was hit hard by a drop in Alberta real estate values.  He was concerned about his credit report, noting that a second bankruptcy would be reported by the credit bureau for 17 years, and also by and the 36 month expected minimum duration of a second bankruptcy.  Perhaps even more importantly, he wanted to keep his sailboat which in bankruptcy would have been lost. We devised a plan for him to restructure his debts.  He agreed to pay $1,200 monthly for 60 months plus a final lump sum of $15,000.  This is a total of $87,000 being 58% of his debts.

About two years into his consumer proposal, his income dropped and he could no longer afford to pay the $1,200 monthly.  He began to live on his boat.  We recommended he amend his consumer proposal and offer to pay a much lesser and manageable amount – a total of only $38,000.  This amendment was accepted by his creditors. Overall he paid 25.7% of his debts.   With no additional fees.

Pending mortgage shortfall and over $121,000 of credit card debts

This elderly fellow sunk too much money into a family business with seasonal revenues, namely over $120,000 on his credit cards.  His home was in foreclosure and he needed our help.  We devised a plan for him.  He would keep his business, unfettered by those debts and would pay $500 monthly for 48 months.  He will pay $24,000 over 4 years, estimated as 16% of his debts.  No additional fees.  Avoiding a second bankruptcy with more adverse credit reporting was important to this debtor.

Separated with $24,000 of credit card debts

Following a separation this lady could not afford her usual payments toward her debt obligations.  She could make a small payment and she chose to make a consumer proposal to her creditors.  We devised a plan for her.  She will pay $200 monthly for 39 months for a total of $7,800 equating to 31.8% of her debts.  No additional fees.

Over $126,000 in ICBC debt

This young fellow was driving his parents car while he had only a learner’s driver’s license.  He chose to drive without being accompanied by someone having a valid drivers license.  You know the rest.  He was in an accident, ICBC declined responsibility for coverage, the damages to property and personal injury were somewhat extensive, his parents questioned whether to report their son as a car thief in order to enable insurance coverage, he lives with an injury and the sad memory, ICBC is pursuing him for the $126,000 they paid out to the other party, and ICBC has denied him another learner’s license.   He is still a student and has no income.

He approached us with his father.  In our experience, we know ICBC requires a certain minimum recovery and that it would be more expensive to strike an arrangement with them outside a proposal.  His father agreed to contribute $12,000 as a lump sum if ICBC would accept that.  We devised a lump sum consumer proposal that ICBC accepted and the son has his learner license again.  With no additional fees.

Self-Employed Fellow with Garnishees

For about 18 months this fellow faced garnishees from Canada Revenue Agency for unpaid income taxes and GST.  Being an annual GST filer, when the GST rate was at 12% he found it impossible to pay it when due.  Being self-employed, the income tax collector garnisheed his self-employment income at 20% of gross, the GST collector at 15% of gross, and a judgment creditor (a credit card company) at another 30% of gross!  These garnishees totaled 65% of his gross income!

Boy, did he need help.  We devised a plan for him.  He offered to pay $267 monthly for 59 months under a consumer proposal so his creditors would receive a 20% return.  All garnishments stopped; creditors accepted his proposal.  And, because he is self-employed with a growing tax debt during this calendar year, our plan included that he will not have to pay whatever tax debt accrued right up to the date of his proposal filing. Everyone is happy. With no additional fees.

How do your circumstances compare?

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