(Covid) beats his job and forces him to retire

Jean-Claude, 65, has been working at the same textile production company for years. His job pays well and he can also work overtime to make ends meet. Corona virus will destroy his financial balance.

Until March 2020, Jean-Claude earned $3,500 to $4,000 per month. He lives in an apartment with his retired wife, Jeanine, who receives $1,215 in state pensions.

From a financial standpoint, the couple navigates on sight and lives from one payment to the next.

Having not put any money aside, Jean-Claude gradually increased the balance on his cards and his line of credit, which is about $20,000.

Since he never skips a payment, he thinks he’s in good financial shape, but something unexpected will turn everything upside down.

placed and then fired

When Quebec is first booked in March 2020, the company where Jean-Claude works must close its doors for three months. When work resumes in the summer, overtime is eliminated, which significantly reduces the income of a sixty-year-old.

My employer stopped working again in December 2020 due to supply problems caused by the health crisis. When it reopened a few months later, many jobs were abolished because an adequate level of production could no longer be maintained. Jean-Claude is passing by the side of the road.

A man can count on his employment insurance benefits for a few months, but it’s not enough to cover his needs and he owes an additional $10,000 on his credit cards. When the benefits stop, Jean-Claude now owes more than $29,000, to which he must add his car rental balance ($9,000), for a total of $38,000.

Since he is 65 years old, he decided not to start looking for a new job, but instead, decided to retire.

He now receives a QPP and an old-age pension for a total of $1,350 a month.

Combined with Janine’s retirement income, this represents $2,565. With expenses amounting to more than $2,470 per month, the couple can barely make ends meet. What’s more, Jean-Claude is unable to make even minimal payments on his cards and credit line, and creditors are becoming more and more insistent.

The best option: bankruptcy

Soon the situation becomes unacceptable. Not knowing what to do to restore financial stability, he decided to consult a firm of licensed insolvency trustees.

After laying out the balance sheet of his assets and debts, Maxime Morin, director of the financial (consumer) recovery and insolvency group at Raymond Chabot, quickly realized that Jean-Claude wouldn’t be able to get by unless she took a more stringent step, either consumer offering or bankruptcy, two options in case insolvency.

“Due to his age, income, precarious health, and the fact that he does not intend to apply for additional credit, the best solution in his case is bankruptcy,” Maxime Moran explains.

In this way, he will be able to get rid of his credit card and his credit limit debt, and he will be exempted from bankruptcy after nine months during which he will pay a predetermined amount to the trustee. Being up to date on his car rental payment, he can also keep it.

“If Jean-Claude’s income increases due to his return to the labor market, in this case the time required for bankruptcy can increase his bankruptcy to 21 months,” the financial recovery manager specifies. The amount to be paid per month to the trustee is also likely to be adjusted incrementally.

financial status


  • RRSP $15,000
  • Honda Civic for rent

consumer debt

  • 19.99% interest credit cards $14,000
  • Credit limit $15,000
  • Car rental balance $9,000

Total debt is $38,000

Monthly income

  • QPP and Jean-Claude Old Age Security Pension $1350
  • QPP and Jenin Old Age Security Pension $1,215

Total income 2565 dollars

Spouses’ monthly expenses

  • $2,471 (including rent, phone, electricity, insurance, rental cars, groceries, and Genin credit card payment)

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