Am I in Trouble?

Posted in Debt Help
Posted by Brian McIlmoyle, B.Sc., CIRP - LIT

am-i-in-troubleAm I in trouble?

I recently met with a client in our Kitchener office. When we sat down, she advised me that the principle reason for her visit was that she wanted to get a new car and no one would loan her the money.

After a few minutes of conversation a picture of her finances began to emerge. She owed $15,000 in credit card debt, had a loan for $15,000 secured to her current car (which is only worth $5,000), and she owed the government about $8,000 for income taxes because last year she cashed out her RRSPs. Every month she spends 70 % of her income just to service her debts! On top of all that, she was spending $500 a month just to put gas in her old clunker.

Together we considered her options. She really did not want to file bankruptcy, but knew she had to do something. She decided that she should surrender her gas guzzler, leasing a new more efficient car and then file a consumer proposal to deal with her debts. As long as she could keep up with the car payments she could keep her lease car in a proposal so this made perfect sense.

In this client’s case, she really did not realize the position she was in until we sat down and looked at it. She started out wanting to take on more debt to try to solve her problem, by the end we had a plan to deal with her money problems, get that new car and get her debt free without filing bankruptcy!!

If you think you are in trouble and are looking for options call us at 1-866-747-0660 and speak to a trustee today. We can help, even if you don’t need to go bankrupt.