When Anna arrived in the country two years ago, she found herself caught up in domestic violence. She had to leave the family home to take refuge in an emergency shelter with her three young children.
During her life with her husband, he had her sign several documents. Speaking very little French and English and trusting him, she had unknowingly applied for credit cards. The phone account was also in his name.
It wasn’t until she started getting letters and calls from creditors that she realized something was wrong.
Unknowingly owed $48,000
Unbeknownst to her, her husband had owed her $48,000 with credit cards, quick loans, and an unpaid $10,000 phone bill. It’s a disaster for the woman who was on the verge of finding a home and a job to start a new life for herself and her children.
With no knowledge of credit or Canadian law, no family or friends in Quebec to rely on, the woman is overwhelmed by events. “I was very afraid of calls from creditors. I didn’t know what to do,” says Anna. Accompanied by the social worker who supported her in her efforts, she therefore sought advice from a union company.
Inevitable bankruptcy
During the first meeting, Valérie Beauchamp, Financial Recovery Advisor at Raymond Chabot, first carried out a debt inventory. “We received a copy of his credit file to get a full picture of the situation. We found that there were several debts that Anna didn’t know about,” explains the counselor.
With no assets and few financial resources, she clearly found it impossible to repay $48,000. In his case, bankruptcy was the best solution.
“Once under the protection of the law, the calls and calls from creditors stopped. After nine months, she was able to be cleared of her spouse’s debt for a reasonable monthly payment that took into account her limited income,” says Valérie Beauchamp.
The latter reminds us that we should never sign documents without understanding their meaning. “Don’t trust blindly, even if it’s a family member or spouse,” she recommends, adding that sensitive personal information like social security numbers should also not be revealed.
HIS FINANCIAL SITUATION
Financial assets :
consumer debt:
- Credit cards: $35,000
- Quick Loan: $3,000
- Phone bill: $10,000
TOTAL DEBT: $48,000
Monthly income :
- Social Security: $848
- Family Allowances: $1,551
TOTAL REVENUE: $2399
Monthly expenses:
- $2,425 (includes rent, phone, electricity, groceries, transportation, clothing and medicines, etc.)
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