Collection Agencies - Need advice on collection - urgent - Canada

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RE: Need advice on collection - urgent

Postby franniee2003 » Mon Sep 29, 2008 07:01:20 PM

I dont think Bankruptcy would be the way to go. My cousin went under a debt repayment plain with a credit counselling company and they were dollars in debt. They the credit company got the interest rate lowered and in some cases wiped right out. They paid every thing off in 4 years. I have a call into her to find out what there payments were a month I think the payments were $660 a month. But I remember her telling me that one of the credit cards the Interest payments were like 18% the credit card company wiped the Interest rate to zero and they only had to pay the principle why dont you sit down and talk to a credit counsellor in your area I think you can find them in the phone book
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RE: Need advice on collection - urgent

Postby angella » Tue Sep 09, 2008 01:50:22 PM

I agree with Raymond about the bankruptcy trustee. Before declaring bankruptcy, though, you need to be absolutely certain as to who can be held legally responsible for the debt, so here's where I would start.

Take a look at the credit card agreement. Is your husband simply a user on your card or is he a joint owner of the card. If he is a joint owner, you declaring bankruptcy won't help. You will both have to as they will simply go after him. If you are the only credit card owner, they will only be able to sue you.

Honestly, with a $500 per week income, there will likely be no debt repayment requirement on your debt.

With a $1000 car, the value of the car is will below what you will be required to sell to service the debt. You will be able to keep it.

Bankruptcy fees, for the truly destitute, generally are held at whatever comes in through GST and tax returns. Anything over that goes to the creditors.

Talk to a trustee... today. The consultation is free.
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RE: Need advice on collection - urgent

Postby Raymond » Fri Aug 29, 2008 03:02:51 PM

I think she means her husband would declare, not her.

For those who are contemplating bankruptcy, here's (one of many) websites that lists assets that are exempted according to the province you are living in.

http://www.bankruptcycanada.com/Ontario-Bankruptcy-Exemptions.htm

The lady has come to the point where she needs to stop getting amateur advice off the weblogs and sit down with a capable trustee who will go over the minutiae of her finanacial affairs. I should have mentioned that Ontario is one of the provinces that has the 12 month contribution clawback rule for RRSP's and the like. As well, she needs to verify with the trustee that the debts being applied for discharge are all in her husband's name and not joint.

Whatever; the family needs to act quickly. Bankruptcy fees are not that expensive and can be paid off monthly at a modest rate up until the discharge. Better than sinking money into losing causes like high interest credit cards and those idiotic vampire debt settler admin fees where only the debt settler comes out ahead.

Ray
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RE: Need advice on collection - urgent

Postby ranzzzz » Thu Aug 28, 2008 03:44:52 PM

If they're under your name, yes. If not, nothing will happen to your husband's assets.
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RE: Need advice on collection - urgent

Postby athomemom » Thu Aug 28, 2008 12:48:48 PM

Thank you for your advice, but I need further information, if I declared banckruptcy, will it affect to my husband ? how about RRSP exemption ?
Will it also effect on RESP of my childs?

When is the good time to do it ?
Thank you.
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RE: Need advice on collection - urgent

Postby Raymond » Thu Aug 28, 2008 12:01:18 PM

Well, on 500 bucks a week and 2 toddlers, there's just no way you could even service the debt on 4 credit cards and a personal loan. Heck, it's impossible for a couple to even live on 500 bucks a week with no toddlers and no debt these days.

Perhaps you might as well stop making payments on any of the cards at this stage because your credit is already R9 (screwed) and you will be only going further and further into the hole as credit card interest mounts. I'm surprised one of those miserable Deanna Natale or George Krieser types hasn't sued you by now.

Doubtlessly, if you pull your 2 credit files from Equifax and TransUnion, you will see hard inquiries from your creditors sizing you up in terms of assets to discover what pickings there might be. If they haven't sued you over the 12K, it's probably because they figured they would be slim.

Sadly, most personal bankruptcies involve relatively small amounts. In Kitchener-Waterloo, a couple of years ago, the average discharge was only about $36K. It just goes to show you how thinly stretched people are if it takes that small amount to push them over the edge.

Bankruptcy is certainly no shame in cases such as yours and you will be probably be able to rebuild your credit in a shorter period of time than if you try to keep up payments in a losing cause as in debt settlement. I wouldn't make any more payments to creditors until I sat down with a trustee in bankruptcy and discussed your finances with him. He will tell you about the RRSP exemptions in filing if that is the route you need to take.

BUT the main problem is that you are not making enough money to live on in this economy. Even if all your debts were cleaned up tomorrow, and your credit rating restored, you still would have trouble making a go of it because your basic living expenses exceed income.

Ray
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RE: Need advice on collection - urgent

Postby athomemom » Thu Aug 28, 2008 11:12:17 AM

I do not have any estate or investment, we have a car that value may be $1000 (or less), we have RRSP but on my husband name (since I'm not working, I can't have one)

My husband salary around 500 a week, and we still struggle to pay all the bills, and by the end of month we have nothing.

I know I can not pay anything more than we have to pay now, its make me really panic.

Could you help me, do I have to seek for debt settlement or going for bankcruptcy or is there any other way ?
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RE: Need advice on collection - urgent

Postby Raymond » Thu Aug 28, 2008 10:17:43 AM

It all depends

1. Do you have equity in any real estate? Probably not since you rent. Are there any other significant assets like automobiles, RRSP's, investments etc.?

2. What is your NET (not gross) family income and is it expected to be stable for awhile?

Before you start paying off anyone or end up getting sued, you need to start crunching some numbers.

Ray
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Need advice on collection - urgent

Postby athomemom » Thu Aug 28, 2008 09:26:02 AM

I hoping someone could give me some advice. Here is my situation :
I got credit card line that start small than they increased it 10 times. First I almost didn’t use it a lot, then my husband got into trouble, he filed income tax that in result we got tax return for $4000, we was stupid, we spent that money buying things and traveling, no saving, then a year later it, a letter from Canada revenue came said that my husband made a mistake when filed the tax and demand the money back plus interest which total to be $5500. They demanded to pay in one time, my husband took the money from my credit card, then a lot of thing happened, our car broke down, my parent sick and the bill piled up to $12.000.
I’m a stay at home mother of 2 toddlers. We cannot keep up paying all the bills, rent and the credit cards, my husband has 3 other credit cards that he still has to pay (and still paying until right now).
But the one I has ($12.000 bill), we can’t pay it, the interest itself more than we can pay. So we stop paying around February 2008 and the collection agency on May 2008 start sending me letters and calling me. Then we moved, it was stopping for a while until they found our new phone no. last week and keep leaving messages.
We totally broke, we can barely pay our rent for next month, we live in overdraft bank account (always minus), my husband has 3 other credit card to pay and $5000 debt from a friend.

My questions is :

1. What should I do ? should I receive the call and talk to them ?
2. How long they will wait until they sue me ?
3. Can they sue my husband too? (he use to have the supplement card then I canceled it when the card reached the limit)
4. Until this day, I didn't received any letter from them at my new address, if they sue me, will I know that ?
5. I do not have any property or asset that valuable to seize, I’m not even working. If I got a judgment, can they garnish my husband salary ?

I'm really desperate looking for answer, please anybody can help me ?

Athomemom

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