How an LIT can help you navigate the debt relief journey

Debt can happen to anyone — through an unexpected job loss, rent increase, or emergency car repair. Sometimes bad things just happen to good people, and those struggling with debt often feel overwhelmed by guilt and embarrassment. However, it is important to remember that help is available and Licensed Insolvency Trustees (LITs) can support you along your path toward a debt-free future.

Randy Kobbert is an LIT with MNP Debt based in Lethbridge, Alberta. He recently helped a debtor navigate the debt relief journey — and we have shared their story below.

Marie’s debt journey

Marie had lost her husband to cancer several years ago, and he had always managed the money in the family. Her three children are all married and have very busy lives raising her seven grandchildren.

Marie’s grandchildren are the centre of her life. She often had them over on weekends or during her days off from work and she always enjoyed giving them what they wanted. When they were younger, these treats were small and did not cost much. However, these gifts became progressively bigger and more costly as they grew — and now include downpayments for the first cars of the two oldest grandchildren.

Marie had never said no to her grandchildren in the past and she didn’t feel that she could start now. She still had some savings from the life insurance proceeds and was also able to borrow on her line of credit as needed.

She worked a full-time job in the healthcare field and began receiving pension benefits while she continued working. After filing her taxes, she was quite shocked by her large tax bill. Her accountant told her that she should ask her employer to withhold additional taxes from her pay going forward to account for her added pension income.

However, Marie experienced a health scare last year and had to take some time away from work. She was uncertain whether she’d be able to go back to work full time and began to feel vulnerable and insecure. During this time, she struck up a friendship with an individual online and they regularly exchanged messages. She enjoyed the companionship and belonging she felt from their conversations.

After several months, she felt she could trust this friend when they suggested investing in an opportunity of a lifetime. She was excited but did not talk to her children about her plans since she had always been proud of her independence.

Marie’s savings disappeared almost overnight. She also realized she had used her remaining line of credit and credit cards to fund the bitcoin purchases requested by the broker to complete her investment requirements — however, the broker soon stopped answering her questions. Marie forced herself to make some formal inquiries about the investment opportunity with regulatory bodies and the authorities and was told she had been scammed.

Marie was in shock and disbelief and spent the next several days in tears. She admitted to withdrawing from any contact with others after realizing her loss, going through the various stages of shock, sadness, despair, and anger. Marie felt embarrassed to talk to her family and was using her line of credit to help pay the minimum payments on her credit cards since her income had been reduced to pensions only. However, all these creditors were now calling her several times a day because she hadn’t been able to pay anything to them.

Marie was continuing down her mental spiral of despair. One day, her friend suggested that she talk to a Licensed Insolvency Trustee (LIT) with MNP Debt about her debt relief options. Her friend admitted to having her own challenges with debt in the past — and expressed how much they had helped her.

How an LIT helped Marie navigate the debt relief journey

Marie contacted Randy Kobbert, an LIT with MNP Debt in Lethbridge. He let her know that the office was local in Lethbridge and that he was able to meet with her in person at her convenience, as she was not adept with computers and was uncomfortable with the idea of a video call.

During their in-office meeting, Randy could sense that Marie was very embarrassed and that it had taken her a considerable amount of time to decide to seek help. He assured Marie that she was not alone, that the incidents she had experienced in the past were not her fault, and that he was here to help her.

Randy listened to Marie’s background and circumstances carefully and let her know that she always had options — and that they would reach her best solution together. He reviewed her financial picture during the initial interview and discussed her debt relief options. After Marie reviewed both the Consumer Proposal and Bankruptcy alternatives, along with the informal solutions in the marketplace, she decided Bankruptcy would be the most appropriate fit for her situation.

Randy let Marie know that the passage of time would help her put her challenges behind her, despite her current feelings of guilt and despair. He encouraged her to talk to her family again and to use the tools available to optimize her financial health going forward. Most importantly, Randy advised Marie to focus on her personal well-being and to understand that sometimes bad things can just happen to good people.

Take control of your finances

If you are struggling with debt or overwhelming financial stress, your situation may feel hopeless. It is important to understand that help is available — and an LIT can help you review all the debt relief options so you can choose the one that works best for your specific situation.

Contact your local LIT to learn more about the debt relief solutions available to you. Together, we can help you navigate the debt relief journey and take control over your financial future.