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Turning fraud-fueled financial struggles into success: how Spergel helped John

Discover how John, a Kingston resident, overcame financial adversity, including a $40,000 fraud loss and a $10,000 line of credit debt, with the support of Spergel. Despite initial setbacks with the RCMP, John found hope and a path to financial stability through strategic debt management and expert guidance from Spergel.

Client Background

John is a single man living independently in Kingston, Ontario. John found himself in financial distress after falling victim to a $40,000 fraud scheme. Despite reporting the incident to the RCMP, no resolution was achieved, leaving him feeling overwhelmed and uncertain about his financial future. Additionally, John was carrying a $10,000 line of credit debt, further complicating his situation. He remained determined, however, to overcome these challenges and regain control of his finances with the help of Spergel. In terms of income, John relies on his ODSP payment of $1100 per month to make ends meet.

John's success story

The Challenge

John was facing significant financial challenges as a result of falling victim to a fraudulent investment scheme. It was an elaborate online investment scam that promised high returns with minimal risk. Enticed by the prospect of financial gain, John invested $40,000 of this hard earned savings into the scheme, believing it to be a legitimate opportunity. As time passed, however, it became evident that the promised returns were nothing more than empty promises, and John realized he had been defrauded. Despite reporting the incident to the RCMP and providing evidence of the fraudulent activity, no action was taken, leaving John feeling frustrated and betrayed. Nonetheless, John remained determined to seek justice and regain control of his finances with the support of Spergel.

The $40,000 loss had a profound impact on John’s financial stability, leaving him struggling to meet his financial obligations with a limited income. Additionally, with a $10,000 line of credit debt hanging over his head, John was under immense pressure to find a debt relief solution and regain control of his finances. These challenges not only affected John’s financial well-being, but also took a toll on his emotional and mental health, as he grappled with feelings of uncertainty about the future. John reached out to Spergel’s expert Licensed Insolvency Trustees to help him overcome these obstacles and rebuild his life with support and guidance.

Solution

By working closely with the licensed professionals at Spergel, John was able to receive expert guidance and explore various options to address his debts and regain control of his finances. John’s dedicated Licensed Insolvency Trustee reviewed his finances in detail and advised him to consider filing a consumer proposal as a form of debt relief. A consumer proposal is a legally binding agreement between John and his creditors, facilitated by a Licensed Insolvency Trustee. Through the consumer proposal process, John could negotiate to repay a portion of his debts over an extended period of time, typically up to five years, with the remaining balance being forgiven. Consumer proposals can reduce your debt by up to 80%, and at Spergel, there is a 99% acceptance rate on any consumer proposals we file. This option gave John a structured and manageable way to address his debts while avoiding bankruptcy. It also allowed him to keep his assets including his home and car, as well as a number of other advantages including immediate protection from creditors.

Implementation

Once John had decided to proceed with a consumer proposal as advised by his Licensed Insolvency Trustee, Spergel supported John through the process. We ensured his proposal was fair and feasible, advocating on his behalf to reach a favourable outcome with his creditors. His Licensed Insolvency Trustee negotiated with his creditors on John’s behalf to seek their acceptance of the proposal. Once approved, it was agreed that John would make affordable monthly payments of around $300 per month for three years to clear his debt. Spergel also provided John with invaluable financial education and resources to empower him to make informed decisions and build a brighter financial future. With our support and expertise, John could overcome the obstacles he faced and take steps towards achieving financial stability and peace of mind following his unfortunate scam. At Spergel, we treat every individual with compassion and understanding, focusing on helping to find an appropriate solution. After all, financial misfortune can happen to anyone.

Results

John could not be happier. He has a newfound sense of financial stability and peace of mind following a very unfortunate and stressful financial incident. He took Spergel’s advice, taking proactive steps to address his debts via a consumer proposal. His debt was reduced by a whopping 80%, and now he simply needs to make his affordable monthly debt payments until his debt is eliminated entirely. As well as regaining control of his finances, John was able to keep both his house and car, and received the creditor protection he needed. He no longer lives under the shadow of fraud-related debt and creditor harassment, instead having a structured and manageable path to debt freedom. John’s success story serves as inspiration for others facing similar financial struggles, demonstrating that with determination and the right support, it is possible to overcome even the most daunting obstacles and build a brighter financial future.

Conclusion

John’s journey with Spergel highlights the transformative power of seeking professional guidance and taking proactive steps to address financial challenges. Despite facing significant adversity, John chose to take control of his situation with Spergel’s help. Through filing a consumer proposal, John not only found relief from overwhelming debt but also gained invaluable financial education and support that empowered him to rebuild his financial future. John’s success story serves as a reminder that no matter how daunting the obstacles may seem, there are solutions available and support systems in place to help you navigate your way to financial stability and peace of mind.

Client Testimonial

Working with Spergel was a complete game-changer. After falling victim to a fraud scheme and feeling completely lost in debt, I reached out to them for help. From the moment my phone call was answered I felt a sense of relief knowing that I had a team of experts on my side. They guided me through the entire process with patience and understanding, explaining all my options and helping me choose the best path forward. I never felt judged. Thanks to their expertise, I was able to navigate my financial challenges and regain control of my life. I can’t thank Spergel enough for their support and guidance – they truly changed my life for the better.” – John, Kingston, Ontario

How Spergel can help you

At Spergel, our expert Licensed Insolvency Trustees have been helping Canadians to gain debt relief for over thirty years. As the ‘get rid of debt’ people, we help individuals in various ways to improve financial wellbeing. In this scenario, we supported John in filing a consumer proposal to reduce his debt while enabling him to keep his assets and avoid bankruptcy following an unfortunate scam. Here are some ways we can help you:

  • Debt consolidation and management – making debt easier to handle and reducing overall interest payments.
  • Budgeting – we help to create realistic budgets and financial plans tailored to your needs.
  • Credit counselling – we offer guidance on improving and maintaining a healthy credit score. 
  • Debt relief – for any individuals facing significant financial challenges, we provide advice on your options including bankruptcy and consumer proposals, guiding you through the process and helping you make informed decisions.

By offering a range of services and expertise, we aim to empower individuals to gain financial freedom and to take control of their finances to build a more secure future.

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