Mélanie and Karine’s dispute

Mélanie and Karine have been business partners for five years, building a successful small business together. Over time, their visions diverge and tensions mount. They finally decide to end their partnership. At the end of the partnership, Mélanie owes Karine $25,000, but she can’t afford to repay her. Fearing that the situation could escalate, she makes an appointment with Martin, a BRESSE consultant. When they meet, Martin realizes that Karine is Melanie’s only creditor. Without this debt, bankruptcy would not even be a possibility. He explains that bankruptcy could wipe out the debt, but would deprive Karine of any repayment. Wishing to avoid this outcome, Martin proposes an out-of-court settlement instead, so that the two former partners can find a simple and equitable solution.

The objectives

– Avoid bankruptcy;
– Settle Karine’s debt fairly; and
– Preserve her credit rating.

The solution

Following Martin’s advice, Mélanie offers Karine a lump sum repayable in monthly instalments. The agreement is clear, realistic and respectful of Mélanie’s financial capabilities. Against all odds, Karine accepts the proposal. Thanks to Martin’s intervention, the conflict is settled quickly and without legal recourse.

The result

Mélanie agreed to pay Karine $5,000, in 25 monthly payments of $200. She thus avoided bankruptcy and protected her financial stability.

For her part, Karine has not lost everything: she has recovered part of the sum owed to her, which would not have been possible in the event of bankruptcy.