When Dave was 17 years of age, he was involved in a motor vehicle accident. The Insurance Corporation of British Columbia (“ICBC”) determined Dave was 50% responsible for the accident. Unfortunately, Dave did not have a driver’s license at the time of the accident and therefore he had no insurance coverage. A significant award was paid out to the other driver and Dave was left owing more than $500,000 to ICBC.
Dave is now 23-year-old, single and has no children. Dave is employed full time and he earns about $3,500 per month after taxes and deductions.
Dave decided to seek the assistance of a Licensed Insolvency Trustee (“LIT”) to find out what options he had to deal with this tremendous debt load. The LIT advised Dave of his options to deal with this debt which included bankruptcy and proposal. After carefully reviewing the options Dave chose to make a proposal to his creditors to settle the debt rather than file for bankruptcy.
A Consumer Proposal allows an individual or business to offer a settlement to their creditors. Upon acceptance by the creditors and the court, it becomes a legally binding contract between Dave and his creditors to settle the debt. The settlement can be payments over time or a lump sum payment or a combination there of.
Dave was able to offer a proposal of $475 per month for 60 months which was accepted by his creditors. Dave was able to manage the payments and successfully completed his proposal and move on with his life.
To find out more about the options available to you, contact D. Thode & Associates Inc. today to take advantage of our free consultation.