How Carla* Cut $69K in Student Loan and CRA Debt
Carla had $96,500 in unsecured debt, built up over 15 years of student borrowing, health challenges, and unstable employment.
With her wages garnished for student loan arrears and payday loans covering her rent, a consumer proposal reduced what she owed to $27,000 and stopped the garnishment the day it was filed.
*name changed for anonymity
Safe, secure & confidential
TOTAL DEBT
$96,500
Credit cards, bank debt, personal and payday loans, student loans, and CRA tax debt
AMOUNT ACCEPTED
$27,000
72% reduction in total debt
MONTHLY PAYMENT
$450
Over 60 months, 0% interest
Carla cut $69,500 from her debt, stopped a wage garnishment, and broke the payday loan cycle with one monthly payment that covers all her creditors, including the CRA and her student loans.
Client profile
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Age: 40s
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Province: Ontario
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Employment: Practical nurse
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Family: Single, no dependants
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Homeowner: No
The situation
Carla’s debt built up over 15 years, starting with the student loans and personal debt she took on while training as a nurse.
After graduating, a period of health challenges led to unstable employment, and a CRA tax debt crept up to more than $5,000 over the years.
She fell behind on her living expenses and stopped making minimum payments to her creditors.
When she couldn’t keep up with her student loans, enforcement action followed, and her wages had been garnished for three months by the time she contacted Harris & Partners.
The garnishment left her behind on rent, and she turned to payday loans just to make ends meet and avoid eviction.
Why did Carla choose a consumer proposal?
Carla chose a consumer proposal because she needed creditor protection to stop the garnishment on her wages.
Her credit score ruled out a bank consolidation loan, and an informal arrangement wouldn’t have dealt with her student loans or her CRA tax debt.
A proposal brought all her creditors into one process, including the student loans and the CRA.
Once the garnishment stopped, she could offer her creditors a reasonable monthly payment and still cover her living expenses, without relying on payday loans.
It also put her in a position to start planning the move to a cheaper apartment she’d wanted for a long time.
Carla had never filed for insolvency before and wanted to avoid bankruptcy, particularly with a move coming up.
What this meant for Carla
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Debt reduced from $96,500 to $27,000: a savings of $69,500
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Fixed monthly payment of $450 over 60 months at 0% interest
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Wage garnishment stopped immediately when the proposal was filed
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Student loans and CRA tax debt included in the proposal
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An end to the payday loan cycle
Carla's path to debt relief
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20 April
Carla completed an online consultation with one of our Licensed Insolvency Trustees.
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27 April
We filed Carla’s consumer proposal, and a stay of proceedings immediately stopped the garnishment on her wages. Carla began making her $450 monthly payments, held in trust while her creditors reviewed the offer.
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11 June
No creditor requested a meeting within the 45-day review period, so Carla’s proposal was deemed accepted. The payments she’d made since April were applied to the agreed amount of $27,000, and Carla continues on her path to becoming debt-free.
The outcome
Carla now has one fixed monthly payment and a clear five-year path to being debt-free. When she completes her proposal, she’ll be released from the remaining balances on her bank debt, payday loans, student loans and CRA tax debt.
After years of garnishments and payday loans, she finally has the space to sort out her living situation.
"I have one debt payment to deal with all my creditors. Finally, I can breathe"
Carla, Ontario
Key case details
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Debt type: Credit cards, bank debt, personal loans, payday loans, student loans, CRA tax debt.
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Number of creditors: 6
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Debt accumulated over: 15 years
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Proposal term: 60 months at 0% interest
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Creditor vote result: Deemed accepted after the 45-day review period
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Total debt forgiven: $69,500 (72% of original balance)
Example Savings With Harris & Partners Debt Relief
Your Potential Debts:
Your monthly repayments over a 60-month period would be
Before Help
$1409
After Help
$210
Monthly payments are determined based on individual financial factors
How Much Could I Save
Why choose us for consumer proposals in Canada
Our Licensed Insolvency Trustees provide a customized service that could remove up to 80% of your debt and stress, so you can breathe easier.
Our multilingual team provides support in many languages, from Farsi and Portuguese to Italian and Tamil, leaving out complicated jargon, so you understand everything, every step of the way.
Want to speak to someone in person? Our team is on hand to help at a Harris & Partners office near you.
Still unsure?
It’s never too late to get help with your debt. Book a free, no-obligation consultation with our Licensed Insolvency Trustees in Canada to get started.
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Contact information
It’s never too late to get debt help. Book your free consultation today.
It's never too late to obtain debt help. Book your free consultation today
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- 800-268-8093
- hello@harrispartners.ca
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