Susan is 38 years old and has three children. She has been self-employed for a number of years with irregular income depending on the seasonality of her business.
Susan has been married for a number of years, however recently there was a marital breakdown and the couple is unable to reconcile. The couple has joint assets including a family home, and there are individual and joint debts between them. The matrimonial dispute has recently taken a turn for the worse, and the couple is unable to agree on any significant matters with respect to child custody, division of assets, and use of family income. Unable to come to an agreement with her ex-spouse on the splitting and selling of assets, so that cash could be generated to pay the debts, Susan became overwhelmed with the emotional burden of the separation and her overall financial difficulties.
Realizing that she was stuck in an almost-impossible situation, Susan consulted a Licensed Insolvency Trustee at Smythe. The Trustee quickly assessed this complicated situation and helped Susan develop a plan to deal with her debt and buy herself some time to try to resolve the matrimonial issues and determine what assets she would retain from the divorce. Susan ultimately filed a consumer proposal with a payment plan that offered creditors a higher payment in the second half of the proposal term, so that she could minimize her payment in the first half of the proposal and thus have more time to resolve her divorce. Thanks to Susan’s Trustee’s advice, Susan’s creditors unanimously accepted her consumer proposal despite the fact they could have taken other legal remedies to obtain a recovery. The consumer proposal allows Susan to retain her assets while she resolves her divorce proceeding. Susan is now on the path to a clean financial slate.