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When we counsel individuals or businesses with financial problems, we review and analyze their information and provide them with an assessment and options to help them make an informed decision about what to do next.

Rarely does anyone want to believe that bankruptcy is the solution to a debt problem and, in many cases this is correct.  Looking at the following example, for instance, you might not realize how significant this individual’s problem’s are.

Someone who:

-has $65,000 in unsecured debt;

-owns a house valued at $500,000 with a mortgage against it of $450,000;

-leases an automobile, and,

-has $600 a month available for debt servicing, besides mortgage and lease payments,

may, as a result of the above, not be able to pay debts as they become due and start looking for solutions.

While bankruptcy may be one option, there is another solution to protect the equity in the property,  retain use of the vehicle, continue to make the mortgage payments AND reduce the unsecured debt load- that is to file  a consumer proposal.

By using the $600 a month set aside for debt servicing,  this individual could possibly  file a consumer proposal and pay back the unsecured debt to the extent required, after a proper assessment by a trustee.

If you think that you have some money aside for debt servicing but nowhere near enough to pay your debts, you should consider making an appointment with us, and perhaps a consumer proposal makes sense for you.

You can reach us at 416 736 4357 (HELP) or email us at info@dodicklandau.ca