519-646-2222Rags to riches
We are all familiar with rags to riches stories, how people (like Forest Gump) were able to turn their lives around and become successful despite adversity. I would like to share one such rags to riches story with you, it’s a true story about one of our former clients.
I won’t use her name, but I remain certain if she reads this article she would recognize who it is about. Almost five years ago this woman approached our office for help getting out of debt. At that time, she had a lot of baggage in her life, a run down rental property that over-leveraged with a tenant not paying rent on time, there were relationship, money management and addictions issues.
Although a bankruptcy made sense at the time the threat of the rental property becoming a problem after discharge, that could lead to a second bankruptcy, was very real, we discussed a proposal in case things didn’t work out. That way a bankruptcy would be a fall-back option and it would only require one filing instead of two to clean up the risk of later debt.
All indicators suggested this client had a lot of hard work to do to make this thing work. It was a very real struggle for our client as she faced her demons, dealing with so many life challenges. One by she overcame the issues, dealing with the wayward tenant, getting addictions and relationship issues under control. Strictly budgeting and saving money regularly.
After two years and with a little luck, and with an improved real estate market, she was able to pay out her proposal with a new mortgage. She had fixed up the rental property during the proposal and was able to leverage it to pay out an existing high interest mortgage.
I occasionally run into our client, most of our clients live in the same community as we do, and she would update me as to her financial status and we might briefly discuss options. Just today, she told me that not only is everything in her personal life going well but she now has over $20,000.00 in the bank in her savings account. It’s fair to say that we are both very proud of her progress, and our office wishes her, and all our clients continued success in their own rags to riches tales.