How Tiffany* Cut $28K in Debt as a Single Parent
Tiffany had $38,500 in unsecured debt after five years of rising living costs and a separation that left her raising her daughter alone.
After her bank declined her for a debt consolidation loan, a consumer proposal reduced what she owed to $10,500, with one fixed $175 monthly payment that leaves room in her budget for her daughter.
*name changed for anonymity
Safe, secure & confidential
TOTAL DEBT
$38,500
Credit cards and a line of credit
AMOUNT ACCEPTED
$10,500
73% reduction in total debt
MONTHLY PAYMENT
$175
Over 60 months, 0% interest
Tiffany cut $28,000 from her debt, avoided bankruptcy, and replaced minimum payments that weren’t reducing her balances with one affordable payment she can plan around.
Client profile
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Age: 40s
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Province: Ontario
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Employment: Employed full-time, office administration
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Family: Separated, one child
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Homeowner: No
The situation
Tiffany’s debt built up over five years, driven by a high cost of living and a separation that left her raising her daughter without financial support from her ex-spouse.
On a single income, she managed to pay off her student loans, but her high-interest credit cards and line of credit were much harder to keep on top of.
She was meeting the minimum payments each month, yet her balances weren’t going down.
When she applied to her bank for a debt consolidation loan, she was declined, and she began looking into a formal arrangement with her creditors.
Why did Tiffany choose a consumer proposal?
Tiffany chose a consumer proposal because the $175 monthly payment fit her budget, covering her living expenses while leaving room to support her daughter’s extracurricular activities.
With a consolidation loan no longer an option, her choice came down to a consumer proposal or bankruptcy.
Bankruptcy would have lasted 21 months, with payments of around $215 a month. Tiffany had never filed for insolvency before and wanted to avoid bankruptcy.
A proposal gave her a lower monthly payment, along with the chance to start a savings plan and work towards rebuilding her credit.
What this meant for Tiffany
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Debt reduced from $38,500 to $10,500: a savings of $28,000
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Fixed monthly payment of $175 over 60 months at 0% interest
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A lower monthly payment than bankruptcy would have required
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No bankruptcy filing on her record
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Room in her budget for living costs, her daughter’s activities, and savings
Tiffany's path to debt relief
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29 January
Tiffany completed an online consultation with one of our Licensed Insolvency Trustees
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11 May
We filed Tiffany’s consumer proposal, and a stay of proceedings immediately stopped her creditors from taking collection or legal action. Tiffany began making her $175 monthly payments, held in trust while her creditors reviewed the offer.
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25 June
No creditor requested a meeting within the 45-day review period, so Tiffany’s proposal was deemed accepted.
The payments she’d made since May were applied to the agreed amount of $10,500, and Tiffany continues on her path to becoming debt-free.
The outcome
Tiffany now has one fixed monthly payment and a clear five-year path to being debt-free.
After years of making payments that never seemed to reduce her balances, and carrying that stress alone while raising her daughter, she has a plan that fits her income, leaves room for savings, and lets her focus on her family.
Key case details
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Debt type: Credit cards, line of credit
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Number of creditors: 2
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Debt accumulated over: 5 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: $28,000 (73% 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.
Most people feel anxious before calling. That’s completely normal. You’re not alone!
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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