An individual came to see us recently who was very concerned that his pay was about to be garnished.
He received papers from one of his creditors stating that they had received a judgment from the courts and that the next step would be to garnish his wages.
The client stated that he had other creditors that had also been to the courts and received a judgment against him.
The client also received a letter recently for a credit card that he had cancelled a few years ago. The bank said that because the secondary card holder continued to use the credit card that he was responsible for this debt.
It was clear at this point that we had to act quickly to avoid a garnishment against his wages.
We discussed both the consumer proposal and the bankruptcy option. The client has a previous bankruptcy so a consumer proposal would be the better option for his credit but he is anticipating a layoff in the next four or five months so he would not be able to complete a proposal.
We were able to act quickly and help this client with the filing of a bankruptcy.