2023-05-02 23:30:00
Mother of three young children, Maria, in her early forties, has been unable to make ends meet since her separation. The fact that she failed to collect child support for more than two years does not help her situation.
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The father of the children left the marital home two and a half years ago, and since then he has not fulfilled his obligations towards his children.
“After the separation we had to move, which caused unexpected expenses. In addition, providing for three children is difficult when there is only one income in the house,” says Maria.
Although her parents are present and give a good helping hand with the care of the children, they cannot give her any financial support. Maria earns her living by doing housekeeping in the premises of various businesses, a physically demanding job that requires a vehicle to be able to move at night between the different commercial buildings.
$36,000 on his credit cards
With a net income of $4,150 per month, including child allowances, Maria cannot make ends meet. Her separation has indeed generated substantial expenses that she is now alone to assume, and this without alimony.
“It is clear that the departure of the father of the children, the move and the absence of child support have created a gaping hole in his budget. As in many cases, credit cards have become the source of additional income to fill a budget deficit,” says Pierre Fortin, Licensed Insolvency Trustee and President of Jean Fortin et Associés.
At the time of the separation, Maria only had a balance of $1,600 on her credit cards, but now they have climbed to $36,000. The minimum payments she has to make each month, which amount to $1,260, literally take her by the throat and she can’t see the end of the tunnel.
Recover the pension
Maria decided to take the situation in hand: with the help of Revenu Québec, she was able to find and seize her ex-spouse, and recently received child support. The arrears are however still far from being recovered, but it is a start.
She also met with an insolvency professional from Jean Fortin et Associés who suggested two solutions: a consumer proposal spread over 60 months, or bankruptcy including monthly payments of $170 for nine months.
She chose the second option in order to be able to suspend interest, erase her debts and start on the right foot.
“The consumer proposal should always be among the first options considered. However, when our family obligations are important and the budgetary room for maneuver is small, as in the case of Maria, the relatively short duration and the minimal costs of a first bankruptcy can prove to be the best solution”, argues Pierre Fort.
The moral of this story: freeing herself from a heavy financial burden will allow Maria to quickly find better living conditions.
Advice
- Revenu Québec’s mission is to help citizens collect support payments from people who owe them. And with all the effective tools at its disposal, Revenu Québec is well placed to find defaulting payers. Among the possible collection measures, Revenu Québec can:
- Enter a tax refund to allocate it to the pension to be paid;
- Post a legal hypothec on the payer’s home or vehicle;
- Seizure of wages or property and proceed to its legal sale;
- Ask the federal government to suspend or refuse the issuance of a passport.
- Do not hesitate to call on all the services available to ensure that the children receive the financial support to which they are entitled.
- Analyze all possible options to get out of debt. Certainly, one can be proud to repay the maximum to one’s creditors through a consumer proposal rather than going bankrupt, but one should above all choose the best solution for oneself according to one’s situation.
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