Financial problems caused by an accident
Genevieve completed her studies in communications three years ago.
After finishing her Master’s, she decided to launch her own public relations agency. Single and without children, she invested herself 100% in this new venture.
Although things were difficult to start, Genevieve was able to overcome the challenges and win enough contracts to ensure her company’s profitability.
Unfortunately, Genevieve was involved in a serious accident while cycling. One year later, she was still struggling to recover and still hadn’t returned to work. Without income and unable to repay her debts, she decided to meet with a Ginsberg Gingras Licensed Insolvency Trustee (LIT). Genevieve was very nervous at first, but the LIT picked up on her anxiety and reassured her. A trusting relationship was quickly established between Genevieve and her LIT.
Genevieve listened to the LIT’s recommendations, and decided to declare bankruptcy. Her debts included her student loan, three credit cards, income tax liability, unpaid cellphone bills, and a car loan. Her car was seized because she could not continue making payments to the bank.
|Credit card 1||$8,699|
|Credit card 2||$7,002|
|Credit card 3||$5,416|
Genevieve had to provide her LIT with a proof of income to establish the amount of her payments. Since it was determined that Genevieve had no surplus income, her monthly payments were set at $200 for a period of nine months. Surplus income corresponds to the amount of revenue that surpasses the minimum a family needs to maintain a reasonable standard of living. This amount is set in Appendix A of Directive No. 11R.
Once her payments were made, Genevieve emerged from bankruptcy. All her debts were erased, except for her student loan. However, Genevieve was not able to make payments to her student loan during the nine months of bankruptcy. Student loan debts can be included in a bankruptcy only if studies ended more than seven years previously.
On the advice of her Licensed Insolvency Trustee, Genevieve contacted the département de l’Aide financière aux études and the Ministère de l’Éducation de l’Enseignement supérieur du Québec to explain her situation and find a compromise.
|Credit card 1||$0|
|Credit card 2||$0|
|Credit card 3||$0|
In summary, a little more than a year after her accident, Genevieve declared bankruptcy. She emerged from bankruptcy nine months later with only her student debt remaining. Thanks to her bankruptcy, Genevieve was able to free herself from her other debts.
Genevieve continues to be motivated and is preparing to return to the job market. She is relieved to know that once re-established, she will not have to suffer the stress and financial pressure caused by her accident for years.
Whether or not you’ve suffered an accident like Genevieve, we can help free you from your debts. Together, we will find the best solution for your budget.
Ask for a free assessment. At Ginsberg Gingras, you’re always treated with respect and dignity.