More debt than assets? The sad but true fact is that some families, when they separate, have more debt than they do assets. The new Family Law Act of British Columbia not only deals with the division of property but the division of debt. Generally, the parties will share responsibility for the division of debt.
You may wish to get help to deal with your debt.
For example, Doug is a
typical client of credit counselor, Benjy Houser from 4 Pillars Consulting Group.
Doug was tied to his business’s financial performance by personal guarantees and when his business began to sink under the weight of debt, so did he personally. He had already researched bankruptcy and spoken to several bankruptcy trustees. He didn’t know there were other options available.
Meanwhile, Doug was also going through a separation and did not want his wife to bear half the debt associated with his business difficulties.
4 Pillars Consulting set about
creating a plan to get him out of debt and retain as much of his personal
assets as he could. Doug was prepared to lose his condo in bankruptcy, but a
Consumer Proposal was a better option for him. 4 Pillars Consulting successfully proposed a 15
cents on the dollar repayment to Doug's creditors, which he paid in full in a lump
sum payment. Doug got to keep his condo. Within a few months, his debts were
legally settled and he was back working and rebuilding his credit rating. The
stress of his debt was removed.
Then Doug was able to buy his wife's interest out of the condominium. Everyone won. A debt relief specialist negotiates a settlement (called a Proposal) to pay back a portion of what you owe to your creditors. This Proposal has the ability to fully turn your financial life around, as it consolidates all your payments into one low monthly payment. This frees up some cash-flow which allows you to meet you other financial obligations, like monthly bills and living expenses. The other great benefits are that the Proposal allows you to keep your assets, and the filing of the Proposal protects you from your creditors. The phone calls stop.
We appreciate that this is not the typical article you would find on our website in that it is almost (well kind of) a plug for our friend, Benjy. We have sent clients to Benjy and they have been very happy. So, we thought we should share this important resource with others.
Written by Val Hemminger, lawyer
If you wish to talk to a lawyer, please contact us.