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More Debt Than Assets:
When your financial circumstances go backwards 

More debt than assets? The sad but fact is that some families when they separate, have more debt than they do assets. The new Family Law Act of British Columbia not only deals with the division of property but the distribution of debt. The parties will share responsibility for the allocation of debt.

You may wish to get help to deal with your debt. 

More Debt Than Assets:  a Case Example of What to do:

For example, Doug is a typical client of a credit counselor, Benjy Houser from 4 Pillars Consulting Group who was dealing with the pressure of having more debt than assets.

Doug's tie to his business’s financial performance was through personal guarantees and when his company began to sink under the weight of debt. He had already researched bankruptcy and spoken to several bankruptcy trustees. He didn’t know there were other options available.

Meanwhile, Doug was also going through a separation and did not want his wife to bear half the debt associated with his business difficulties.

4 Pillars Consulting set about creating a plan to get him out of debt and retain as much of his assets as he could. Doug was prepared to lose his condo in bankruptcy, but through consultation, Doug learned that a Consumer Proposal was a better option for him. 4 Pillars Consulting successfully proposed a 15 cents on the dollar repayment to Doug's creditors, which he paid in full in a lump sum payment. Doug got to keep his condo. Within a few months, his debts were legally settled, and he was back working and rebuilding his credit rating. As a result, he eliminated the stress of debt, and no longer has more debt than assets. 

Then Doug was able to buy his wife's interest out of the condominium, and everyone won. 

Personalized Debt Relief Plan

A debt relief specialist negotiates a settlement (called a Proposal) to pay back a portion of what you owe to your creditors. This Proposal can fully turn your financial life around, as it consolidates all your payments into one low monthly payment. Consolidation frees up some cash flow which allows you to meet your other financial obligations, like monthly bills and living expenses. The other great benefits are that the Proposal allows you to keep your assets, and the filing of the Proposal protects you from your creditors. The phone calls stop.

We appreciate that this is not the typical article you would find on our website in that it is almost (well kind of) a plug for our friend, Benjy. We have sent clients to Benjy, and they have been euphoric. So, we thought we should share this valuable resource with others.

Written by Val Hemminger, lawyer at Hemminger Law Group Westshore