There are some couples out there where only one of them looks after the finances. This was the case for a client of mine whose husband passed away suddenly.
She had no idea of the joint debt they had, as her husband paid all the bills, took care of the mortgage and took care of her. She was at a loss as to where to turn when she started getting calls from creditors asking and demanding payments, and sometimes wanting the balance to be paid in full.
She had no income as she had never worked. Her husband had lapsed on the life insurance payments so there was no life insurance when he passed away and there was no life insurance on the mortgage. She could not afford the mortgage payments so the bank took over the home and she had to move out.
She was starting to fall into a deep depression until she landed herself a part time job. Unfortunately, it still wasn’t enough to make even the minimum payments on her credit cards.
I met with this lady, who at this point was in tears as she has never been so harassed with callers demanding money. When she tried to explain, they would just say, borrow some money from friends or family!
After our one-and-a-half-hour meeting, she looked and felt like a weight had been lifted off her shoulders. She was able to see that there were options for her, including a consumer proposal and a bankruptcy.
In her specific case filing for a bankruptcy with A. Farber & Partners Inc. was the best option. The collection calls stopped, her job turned into a full time position and she was able to get herself a little apartment. It was gratifying for me to be able to help this lady out of a difficult situation at a time when her whole world was changing. It goes to show that anyone can take control of their financial life and learn how to manage their money.