Guest commentary provided by Janette Martin, Client Service Specialist, North York, Ontario
I recently met with Adele (not her real name), in my North York bankruptcy and consumer proposal office. Recently separated from her husband, who was the sole provider for her and their two teenage kids, and due to her situation she was unable to pay her creditors. Finding work has been difficult as she is a stay at home mother.
A family friend who had gone through a bankruptcy referred Adele to us. Adele had done some reading about bankruptcy and knew that a bankruptcy is what she needed to do in order to get her life back on track. She didn’t have any assets and her income was minimal so a bankruptcy would be a quick solution for her.
During our meeting her son mentioned that both his car and his sisters car were registered in their mother’s name for insurance purposes. I explained to them that if she filed for bankruptcy one of the cars would be exempt under provincial law, but the other car would not be exempt and therefore they would either have to surrender it to the trustee or buy it back from the trustee if they wanted to keep it. Adele was upset that her bankruptcy would affect her children.
I explained why, in her case, a consumer proposal would be better than bankruptcy here in North York. Once she understood her options, a consumer proposal became a viable option in her situation.