Bankruptcy - What to do, what to do..... - Canada

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RE: What to do, what to do.....

Postby TJ.brooks » Sat Dec 03, 2011 09:26:14 PM

Yep....6 yrs.
No they do not get from gov.

It gets written off as bad debt by the creditor.

Collection agency makes money by buying these bad debts for pennies on the dollar and make profit on just about anything they collect....even 5 %....but they are not going to tell you that.
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RE: What to do, what to do.....

Postby Bankruptured » Sat Dec 03, 2011 08:38:37 PM

Bankruptcy it is! haha. I've heard of them taking as low as 5 percent as a settlement.. Regardless of the amount though, is it safe to say that even if I settle without any further judgements, that my credit is tarnished for six years? Do these companies receive payouts from the government upon bankruptcy?
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RE: What to do, what to do.....

Postby TJ.brooks » Sat Dec 03, 2011 08:30:06 PM

Yes if the Statute expires without a judgment beforehand ...after 6 years from last activity on your accounts it comes off the report....but the debt still exists and they will continue to hound you for years to come....count on it.

You mentioned saving for settlements. Not going to get less than 2000 on all those accounts plus the 5000 that already has a judgment which is good for I believe 10 years and can be renewed.

With a Bankruptcy at least you could apply for credit 3 years after it is discharged. No guarantee you would get it but the option becomes available.

2000 for a filing sounds better then 5000 plus what ever settlement agreement you might make. There is still about a year to go on statute....thats a long time....just my opinion.
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RE: What to do, what to do.....

Postby Bankruptured » Sat Dec 03, 2011 08:12:37 PM

Thanks TJ!

Your post also brings up more questions.. If I pass the Statue of Limitations without a judgement against me, are those debts taken off of the credit report after 6 years? This is one of the reasons I'm not wanting to declare bankruptcy just yet, whats the point if my credit will be tarnished for 7 years instead of 6..
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RE: What to do, what to do.....

Postby TJ.brooks » Sat Dec 03, 2011 08:05:37 PM

Bankruptcy here in Canada falls under federal law and is the same in all provinces.

All legal action against you including judgments cease once you have filed for bankruptcy or submit a consumer proposal.
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RE: What to do, what to do.....

Postby Bankruptured » Sat Dec 03, 2011 08:11:44 PM

Thanks TJ.

I am aware of all that, and appreciate the response. I understand its a no win situation lol, believe me! I know better then anyone haha. I havent declared yet for several reasons. If anyone knows if the bankruptcy will for sure wipe clean the judgements, I'd really appreciate that information though.
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RE: What to do, what to do.....

Postby TJ.brooks » Sat Dec 03, 2011 07:45:37 PM

I guess my question to you would be....why don't you declare now?

Seems to me your credit file is already all R9 at this point along with a judgment that would be wiped out immeadiately after filing.

Either way your file will not be stellar to say the least for 6 years anyway....7 if you go bankrupt.

I assume you have no assests to speak of and leave yourself open to wage garnishee.

Cost of your Bankruptcy is governed by law but would probably be less then 2000.00 which can be paid in installments in many cases.
Just curious......seems this would be your best bet even if statute expires you still would owe the debt and even if you paid a settlement after... it would still be reflected as r9 across the board for 6 years with maybe a paid in full notation....no one will give you credit anyway.
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What to do, what to do.....

Postby Bankruptured » Sat Dec 03, 2011 06:35:07 PM

This site is great, I've been reading for hours.

My sob story doesnt matter lol, but my predicament is this;

I have about 39,000 (13,000+20,000+6000) in personal unsecured debt that I havent paid on in over a year. I have a judgement against me for an additional 5000.00 against a forced sale of my home, and they repossed my vehicle.

I was advised by a credit counselling society to basically lay low and wait for the statue of limitations to take effect.(I Iive in Alberta, so apparently that is two years)-- Unless of course I win the lottery!

I have no fixed address, bank accounts,telephone, or any current credit transactions at all.

So... with all my good fortune I share with you fine people today, what would you recommend?

My main question right now is regarding bankruptcy or a consumer proposal. If I try to "lay low" as suggested and save enough money to offer a percentage settlement in the next couple years and judgements are awarded against me during the time I attempt to save... Will a bankruptcy wipe out those judgements if I declare bankruptcy after the judgements are granted?
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