The way things are going people in Canada and the USA will be filing for bankruptcy.I don't think the creditors or collections agencies want to hear the word bankruptcy in 2009.

The debt purchasing companies are more difficult to deal with, but if they know someone is going to go bankrupt they will settle.

I have a friend that finds 10 year old cars and older with less then 200,000kms that are in excellent shape for under $3000.00. I don't how he finds them, but he does.

I have avoided bankruptcy twice in my life and as I get older I don't want to go down this road a third time. This time around I had tripled the debt then the first time and to tell you the truth I’m done with the credit world for now.

It has been a great feeling paying cash for everything and not seeing a bill come in the mail. The plan is to own a home in three years and only have one credit card. If I own additional property it will be for commercial reasons only.

I wasn't at the trial obviously but in Ontario as in most other provinces, the default interest rate only gets applied if their is no pre-existenting rate in the loan agreement (as would be the case if you damaged someone's property say). It seems Nova Scotia has the "Interest on Judgments Act," Section 233, which allows the judge more flexibility in assigning post judgment interest rates

http://www.gov.ns.ca/legislature/legc/statutes/interest.htm

Thus it's possible you may have gotten the 5% rate instead of the regular credit card rate. That wouldn't have happened in Ontario though. You should check your judgment order to ensure that's the case with you.

Irregardless of the interest rate, it will keep growing and is good for 20 years, irrespective of whether it's on your credit report. As well, many outfits in the US are starting to buy judgments up. It can only be a matter of time before it comes to Canada and you may not find the new owners as accommodating as the previous ones.

If you ever want to own a beater car worth more than $3k or a house or apply for a job involving any financial service industry and you have an outstanding judgment against you, it will severly harm you. Say goodbye to that job in collections as well. That's the first question they'll ask you in a surety bond application. Maybe you can get a job in credit repair though. Anything goes there.

Ray

The shareholders are the ones letting the presidents and ceo's have all the luxury's in life.If they can get all that handed to them, all the power to them.

The judgement is not going to be an issue, i have already received a letter stating they are willing to accept 50% and ofcourse i denied it.In due time as the the banks quartely profits will be down and they will want to settle from everyone out there.The interest from the courts is only 5%.

The judgement is good only if it's renewed every 5 years up to 20 years.The judgement will come off my credit file in 2012, and an cannot be put back on by credit bureau guidelines.

The remaining one creditor has offered to settle for 40% and ofcourse i denied it.

If i were desperate and needed my credit i would pay the extra percentages they are asking.I think by now you realized i don't care to have credit in the near future.

If your vehicle is worth less then $3000.00, and no black book value, i think your chances are pretty good of not losing your vehicle.

You're darn right about the yacht thing; however, the fact still remains you have a 10K judgment against you that's good for maybe 20 years in Nova Scotia with writs and liens that can be renewed every 6 years. And that oustanding judgment is growing with post judgment interest at the rate of the original loan agreement. That coud be 19% per year. How are you ever going to pay it off since they refused to settle as you stated?

As well, you have other major creditors who refuse to settle. How do you ever intend to own a car without worrying the sheriff will come and take it away in the middle of the night? How smart is that?

Ray

I see your point; you rather have people file for bankruptcy instead of settling their debts with creditors. I don't care if executives have yachts or big bonuses, or holidays, it sounds like you’re jealous of the executives.

The home had no equity and it sold for the amount owing on the mortgage. I hope people on here try to settle their debts instead of going bankrupt. Like I said in my last post; the way I am doing things will result in me getting my credit back way faster by settling then going bankrupt.

I believe Raymond you find it hard to believe that people out there are settling their debts for 10%.It's not about ego or trying to defeat the creditors, it's about the debts being R9's and if you paid them in full the R9 will not get reversed. I stated this to them and they all agreed with me, they didn't have to settle but they knew I was not going to pay them one penny more then 10%.

I see your point; you rather have people file for bankruptcy instead of settling their debts with creditors. I don't care if executives have yachts or big bonuses, or holidays, it sounds like you’re jealous of the executives. The home had no equity and it sold for the amount owing on the mortgage. I hope people on here try to settle their debts instead of going bankrupt. Like I said in my last post; the way I am doing things will result in me getting my credit back way faster by settling then going bankrupt. I believe Raymond you find it hard to believe that people out there are settling their debts for 10%.It's not about ego or trying to defeat the creditors, it's about the debts being R9's and if you paid them in full the R9 will not get reversed. I stated this to them and they all agreed with me, and they didn't have to settle but they knew I was not going to pay them one penny more then 10%.

Because most people have enough gumption to take the easy way out rather than gratifying their twisted egos with silly head games to make them think they're bringing to heel the financial powers out there. They'll break you, you won't break them. Their executives will continue to own yachts and get big holiday bonuses whether you ever give them a penny.

Collection agencies can't change provinvial consumer reporting laws. Besides, the way you're going you may never settle these debts without a job and having a disability (or whatever).

If the debts remain outstanding - and there's a already at least one judgment against you - if your imaginary house goes up in value due to market changes such that you have more than $5K in equity, they can execute a property lien or get one if they don't already have it.

Of course, you never did get around to resolving whether or not you had a house. On Jan. 10, you said you did, but on Dec.4, you said you didn't.

Ray

Why should i take the easy way out and go bankrupt, when i can settle my debts for 10%.If i would of went bankrupt in 2008 my credit file would show bankruptcy till 2016.Instead i settled and i had the collection agency state in the letter that they were not going to change my date of last activity.This way it will give me a clean slate in 2012.I think i played my cards pretty smart.

Results? no offense, but in your posts, you said you lost your job, owed 13 major creditors over $100,000 and were otherwise destitute. And to date, you (purportedly) still have a number of them who refuse to settle. Those are your words, not mine.

I'm not sure if you had a home or not. You stated in your Jan. 10, 2008 post, you did have one but no equity in it. However, this evening you said you didn't have a home and were hoping to get one. Which is it?

Either way, you could have kept it simple and declared bankruptcy. No big deal. 100,000 people a year do. But you gave as your reason for not doing so that you didn't want to give your creditors the pleasure of seeing you go bankrupt. Instead, you decided to "punish" them by spending years paying them off, albeit at the reduced rate of 10%. How intelligent is that? Talk about shooting yourself in the foot.

The credit reporting consequences of someone in your position (if it really was your position) would not have been any worse and indeed may have improved sooner, if you had simply declared bankruptcy - like anyone else with common sense would have done in your position. Instead, you decided to play endless and stupid head games with your creditors in a twisted effort to bolster a false self image of success by "outsmarting them." The only person you outsmarted was yourself. And now, are you not doing the same thing here?

Ray

Listen here wannabe lawyer, i don't need your approval on what i have done for myself.People can get the same results if they use their head.