Bankruptcy - What's Bankruptcy Like? - Canada

a good place to talk about links

RE: What's Bankruptcy Like?

Postby montyloree » Mon Jun 21, 2010 07:27:16 AM

tagakawit,
you should consult your mortgage provider to see if they would lend to you after you were discharged from bankrutpcy.. that leaves a pretty serious mark on your credit report.

Credit counselling, consumer proposals leaves pretty much the same mark on your credit report, especially if the creditor isn't receiving the full amount of their principal and interest as agreed to in the contract.

If you've got bad credit, you'll probably need to go to a high risk mortgage lender. You'll pay a much higher interest rate.
montyloree
Moderator
Posts: 3772
Joined: Sat Jul 16, 2005 10:52:47 AM
Province: SK


RE: What's Bankruptcy Like?

Postby RichardC » Mon Jun 21, 2010 07:53:37 AM

Strange. I have no idea why people still even consider high interest debt consolidation loans or credit counselling.

I wonder if they also wash their clothes on a washboard in a bucket too instead of using a washing machine/dryer.
RichardC
Member
Posts: 545
Joined: Wed Dec 10, 2008 12:00:10 PM
Province: ON


RE: What's Bankruptcy Like?

Postby average_joe » Sun Jun 20, 2010 01:34:53 PM

There are only three options in the credit world that work in this order listed below, the rest are a waste of time.

1) Pay your debts in full

2) Debt settlement

3) Bankruptcy
average_joe
Member
Posts: 2565
Joined: Sun Dec 16, 2007 03:58:17 PM
Province: NS


RE: What's Bankruptcy Like?

Postby tagakawit » Sun Jun 20, 2010 01:26:23 PM

Dear Average Joe,

I'd rather waste my time (I don't know about the money). At least I know I have considered other options rather than quickly go into bankruptcy because my ulterior motive is to take on mortgage after discharge.

This to me is morally irresponsible. Sorry.

tagakawit
Member
Posts: 34
Joined: Sat Jul 19, 2008 01:16:48 AM
Province: ON


RE: What's Bankruptcy Like?

Postby average_joe » Sun Jun 20, 2010 01:17:13 PM

Tagakawit

These programs you mentioned below are a waste of time and money.

Debt Management Program, Debt Consolidations and Credit Counseling of Canada.

average_joe
Member
Posts: 2565
Joined: Sun Dec 16, 2007 03:58:17 PM
Province: NS


RE: What's Bankruptcy Like?

Postby average_joe » Sun Jun 20, 2010 01:12:08 PM

Why not try debt settlement; you would be surprised how many creditors would accept 10% if they really thought you were going to file for bankruptcy.

average_joe
Member
Posts: 2565
Joined: Sun Dec 16, 2007 03:58:17 PM
Province: NS


RE: What's Bankruptcy Like?

Postby tagakawit » Sun Jun 20, 2010 01:16:31 PM

There are so many pieces that are missing on your story.

For instance, is the 70K in your name only or are there any accounts that is/are joint with your wife? Since your wife is not filing bankruptcy, she should be prepared to pay any joint accounts on her own.

You seem pretty certain that you are filing for bankruptcy, question is, have you already contacted a Trustee and your Trustee had recommended that you file bankruptcy? It does takes a while to determine if you are insolvent or not. You will need to show proof that your Liabilities are more than your Asets to determine the insolvency.

If you file bankruptcy, your Trustee will dispose of your assets excluding any retirement accounts.

Actually, there are adifferent options to choose from such as Debt Management Program, Debt Consolidations. Have you also contacted Credit Counselling of Canada?

If you already have a Trustee, I suggest you talk to them very intently and see what your options are. Nowadays, you should not take bankruptcy very lightly as it will be a stigma for you for at least 7 years, even though you may be discharged after 21 months.

Finally, if you do win any Lotto prize, Trustee can garnish your winnings to pay back your Creditors.

Sorry, but I find it unnerving to see your interest in getting a mortgage after filing bankruptcy. Do you just want to get rid of your debt the easy way to start and get into new debts? I don't see any lessons learn by doing this, unfortunately. Where's the act of being responsible there, Brother?

Anyhow, good luck to you and whatever decisions you choose, hope you recover and learn from it. By then, you become financially responsible.

TagaKawit
tagakawit
Member
Posts: 34
Joined: Sat Jul 19, 2008 01:16:48 AM
Province: ON


RE: What's Bankruptcy Like?

Postby sergruba » Sun Jun 20, 2010 12:33:49 PM

Did you call to debt consolidation companies?
Quickly Eliminate Debt And Save Thousands with http://debit-free.us
sergruba
Member
Posts: 8
Joined: Sat Jun 19, 2010 06:03:05 AM
Province: BC


RE: What's Bankruptcy Like?

Postby RichardC » Sat Mar 06, 2010 12:03:03 PM

You are right. Royal bank is a pain, but we negotiate all the time on their debt, its not impossible. Have you been on title of you home at all during the last 2 years?

That $70k could probably be settled for about $1,100/m over 36 months, all in.
RichardC
Member
Posts: 545
Joined: Wed Dec 10, 2008 12:00:10 PM
Province: ON


RE: What's Bankruptcy Like?

Postby indebtfred » Sat Mar 06, 2010 10:17:48 AM

My debt is $70K, with an income of $55K.

The trustee will likely be Deloitte. As much information as I've been given and as relieving as it would be to see this situation resolved in 21 months, bankruptcy to me is still quite mysterious.

No one openly talks about what it's like during or after it, and honestly it still quite a daunting decision.

Any advice? Can a guy with a $55K income get rid of $70K debt. I've been told that Royal Bank won't negotiate down the debt or do a custom proposal b/c they own the majority of my debt.
indebtfred
Member
Posts: 2
Joined: Fri Mar 05, 2010 02:33:35 PM
Province: BC


,

Return to Bankruptcy - Discussion Area