How Theresa Reduced $91K of Debt to $30K on a Single Income
Theresa* had $91,000 in unsecured debt after an illness, a business failure, and a separation left her managing everything alone.
A consumer proposal reduced what she owed to $30,000, stopped CRA enforcement and collection calls, and let her walk away from a finance agreement she could no longer afford.
*name changed for anonymity
Safe, secure & confidential
TOTAL DEBT
$91,000
Credit cards, CRA tax debt, and personal loans
AMOUNT ACCEPTED
$30,000
65% reduction in total debt
MONTHLY PAYMENT
$500
Over 60 months, 0% interest
Theresa reduced the amount she needs to repay by $55,000, included her CRA tax debt in the proposal, and secured a monthly payment she could manage on a single income while supporting four children.
Client profile
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Age: 40s
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Province: British Columbia
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Employment: Employed full-time, retail
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Family: Separated, four children (three minors, one older)
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Homeowner: No, renting on a single income
The situation
Theresa was working full-time in retail when several financial pressures came together. Illness had already affected her finances before her business failed, while a move from Saskatchewan to British Columbia brought higher living costs. She then separated from her spouse, leaving her to manage her household and debts on a single income.
When her former spouse filed for bankruptcy, Theresa was left responsible for debts they had co-signed. She was supporting four children, including three minors, while dealing with $91,000 in unsecured debt across credit cards, CRA tax debt and personal loans.
She had fallen behind on payments, CRA collection action had begun and collection agencies were calling. Theresa needed a repayment plan that worked with her income rather than adding further pressure to her monthly budget.
Why did Theresa choose a consumer proposal?
Theresa considered debt consolidation, an informal arrangement with creditors, credit counselling, and bankruptcy before deciding on a consumer proposal.
The agreed monthly payment was a major factor. At $500 a month over 60 months, the proposal gave Theresa a repayment schedule that fitted her single-income household budget without requiring a lump-sum settlement or a much shorter repayment period.
It also allowed her eligible unsecured CRA debt to be included alongside her other unsecured debts.
The proposal formed part of a wider solution for dealing with a finance agreement carrying significant negative equity, helping Theresa address two of the biggest financial pressures she was facing.
What this meant for Theresa
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Debt reduced from $91,000 to $30,000: a reduction of $61,000
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Fixed monthly payment of $500 over 60 months at 0% interest
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Eligible CRA tax debt included in the proposal
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Freedom from a finance agreement with significant negative equity
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An end to CRA enforcement action and collection agency calls
Theresa's path to debt relief
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2 December
Theresa completed her initial consultation with one of our Licensed Insolvency Trustees, after finding Harris & Partners through a Google search.
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29 December
We filed Theresa’s Consumer Proposal, and a stay of proceedings immediately stopped CRA enforcement action and collection agency calls.
Theresa began making her $500 monthly payments right away, held in trust while her 12 creditors, including the CRA, reviewed the offer.
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12 February
The 45-day creditor review period had ended, and Theresa’s proposal had been accepted.
Her payments counted towards the agreed $30,000 proposal amount, and she continued making her fixed monthly payments towards completing the proposal.
The outcome
For Theresa, resolving the debt was about more than the number. Between the illness, the failed business, and a marriage that had ended, the co-signed debts landed on her alone.
The stress of carrying all of it while raising four kids on one income had built up for a long time.
Getting the CRA and collection agencies to stop, and being able to walk away from a finance agreement that no longer made financial sense, gave her room to breathe.
With her CRA debt largely behind her, one fixed $500 monthly payment, and five years to the finish line, Theresa now has a plan that matches her income and a clear sense of what her future looks like.
"I have turned a new leaf, and I can see my future."
— Theresa, British Columbia
Key case details
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Debt type: Credit cards ($10,000), CRA tax debt ($37,000), personal loans ($44,000)
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Number of creditors: 12, including CRA
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Debt accumulated over: at least 10 years
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Proposal term: 60 months at 0% interest
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Creditor vote result: Automatically accepted
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Total debt forgiven: $55,000 (65% 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 Ontario 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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