{"id":4315,"date":"2020-03-26T19:20:42","date_gmt":"2020-03-26T19:20:42","guid":{"rendered":"https:\/\/dev-ginsberg-gingras.flywheelsites.com\/?page_id=4315"},"modified":"2023-06-06T15:43:42","modified_gmt":"2023-06-06T19:43:42","slug":"case-study-overspending","status":"publish","type":"page","link":"https:\/\/ginsberg-gingras.com\/en\/case-studies\/case-study-overspending\/","title":{"rendered":"Case study: Financial problems caused by overspending"},"content":{"rendered":"\t\t
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Case studies<\/h1>\n

We resolve. You restart.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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Case study: Financial problems caused by overspending<\/h2>

These case studies are not true stories. They do not constitute actual client testimony. However, they are based on experiences observed by our Licensed Insolvency Trustees.\u00a0<\/p>

These fictional case studies are meant to demonstrate the possible outcomes of a debt solution. In reality, each situation is unique. All individuals struggling with debt should consult a Ginsberg Gingras Licensed Insolvency Trustee to determine the best solution for them, and its effects.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Julia gets back on her feet thanks to her consumer proposal<\/h2>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Julia is a single mother looking after two children. She has a stable job and has $2,000 monthly to support her family. Her rent costs $750 per month. Expenses relating to groceries, transport, and various services account for about $1,000 every month.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The trap of overspending leads to debt<\/h2>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Julia separated from her partner a few years ago. Because she did not want her children to suffer from the loss of income following the separation, she turned to credit cards to maintain the same lifestyle.<\/p>

Despite her good intentions, this choice led to overspending. Furthermore, Julia had been counting on a pay raise, telling herself she would repay her debts, but the raise never happened.<\/p>

Unable to continue making her monthly minimum payments on her credit cards, Julia decided to meet with a Licensed Insolvency Trustee (LIT) at Ginsberg Gingras.<\/strong>\u00a0The LIT quickly settled Julia\u2019s anxieties and reassured her.<\/p>

After having heard the Licensed Insolvency Trustee\u2019s recommendations, Julia decided to file a consumer proposal.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Julia\u2019s debts before the proposal<\/h2>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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<\/th>\t\t\t\t<\/tr>\n\t\t\t<\/thead>\n\t\t\t\t\t\t
Tax liability<\/td>$514<\/td><\/tr>
Credit card 1<\/td>$6,412<\/td><\/tr>
Credit card 2<\/td>$7,809<\/td><\/tr>
Credit card 3<\/td>$8,001<\/td><\/tr>
Credit card 4<\/td>$8,516<\/td><\/tr>
Debt total<\/td>$31,252<\/td>\t\t\t\t<\/tr>\n\t\t\t<\/tbody>\n\t\t<\/table>\n\t\t\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Once the consumer proposal was drafted, Julia signed the documents, and the LIT filed them with the Office of the Superintendent of Bankruptcy Canada (OSB). The LIT transmitted the proposal to Julia\u2019s creditors. The creditors had 45 days to send their proof of claims to the LIT and request that a creditor meeting be held, if they wished. Two scenarios are possible:<\/p>