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Anyone ever declared bankruptcy?

kennyboy

TRIBE Member
Or know someone who has.

Seems the government has done a little reassessment and as it turns out, I owe them some money.

This might be my only option, although I would prefer not to go down this road. How hard is it to get back on your feet after a bankruptcy?
 

pr0nstar

TRIBE Member
BTW, just so you know... it's 7 years to get any credit after bankruptcy, based on the bible.

Also they will take money out of your wages to pay off creditors...

I'd recommend you do not take this route.

I've seen grown men cry in this office :D

pr0nstar
 

kennyboy

TRIBE Member
Forgive as I know nothing on this subject, but don't people take this route because they can't afford to pay the creditors? Do you still have to pay the money owed?
 

pr0nstar

TRIBE Member
I would go talk to a debt counsellor or something.

And trust me, they'll milk you for whatever they can ;)

It's not one of those wipe the slat clean and you get all your pay cheque each week. They will garnish (sp?) your wages to pay the creditors as owed.

You might get something forgiven, but your credit will be screwed for 7 years...

"At the end of every seven years you shall grant a remission of debts. And this is the manner of remission: every creditor shall release what the has loaned to his neighbor; he shall not exact it of his neighbor and his brother, because the Lord's remission has been proclaimed."
pr0nstar :D
 
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kennyboy

TRIBE Member
The credit counsellor said that you deal with a (insert word) for approx. 9 months making payments through them. After that you are free and clear although your credit is toast.

Not an option I really want to consider, but may have to.
 

pr0nstar

TRIBE Member
I might go into a bank and see if they'd consolidate your debt with a loan with payments you could make...

Also you would probably talk to a Trustee in bankruptcy before ending up in my office, as I support the Federal Gov't Bankruptcy office, just one of the offices I support.

But I've learned a bit about the process over the years, as I was thinking the same thing... ;)

Why not just claim bankruptcy and get off with a clean record and no credit for 7 years, I would of dealt with that getting a full pay cheque each month.

But then I learned they'll seize all your assets that are liquid and garnish wages, etc... even if you sell say a car the month before to a friend for $1 they'll reclaim it for book value :D

Good luck, but maybe a bank might be a good solution?
But if not, you'll probably end up at a Trustee sometime soon.

pr0nstar
 

kennyboy

TRIBE Member
Thanks for the help. Hopefully I don't have to go down this road, but the situation is getting desparate.
 

case sensitive

TRIBE Member
A guy at my work claims he has declared bankruptcy twice. I'm not sure if that is possible, but I hope not to find out in my lifetime.

matt
 

the_fornicator

TRIBE Member
Originally posted by case sensitive
A guy at my work claims he has declared bankruptcy twice. I'm not sure if that is possible, but I hope not to find out in my lifetime.

matt
yup. it's possible.

my friend's parents declared it thrice.
 
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LeoGirl

TRIBE Member
Originally posted by kennyboy
Or know someone who has.

How hard is it to get back on your feet after a bankruptcy?
My parents claimed Bankruptcy many years ago. It's off their record now (been over 7 years). The most difficult thing for them was getting credit, anywhere. Actually, near the end of the 7 years they actually started to be accepted for department store cards etc.

In the next 7 years will you...

want to buy a car
want to buy a home
need a bank loan

..........these are things that will be very hard to do.

I think my parents had to proove as well that they were not capable of paying their debts before they could actually claim bankruptcy, but this was like 10 or so years ago so I don't remember exactly

Getting back on your feet is complete dependent on your own drive to do so. Claiming Bankruptcy shouldn't keep you from working and opening a savings account. All it does is give you is NO credit for 7 years ;)

Good luck
 

kennyboy

TRIBE Member
At this point, I can live without a car and anything else for that matter. What I can't live with are debts that consume you and keep you awake at night.
 

Skipper

TRIBE Member
Originally posted by pr0nstar
BTW, just so you know... it's 7 years to get any credit after bankruptcy, based on the bible.
I heard it was 10, and 7 years for accounts that go to R9 status.
 

KillaLadY

TRIBE Member
Credit Councelling is your option, do NOT choose bankrupcy unless you have absolutely NO way of paying back your debt.
 
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Scarlett

TRIBE Member
Originally posted by KillaLadY
Credit Councelling is your option, do NOT choose bankrupcy unless you have absolutely NO way of paying back your debt.
any recommendations for a trusted & reputable credit & debt counselling service? jus' curious...
 

butter418

TRIBE Member
I’ll let you in on a little secret

Once you have R9 status in most cases it is better to declare bankruptcy (depending on the amount of your debt. Don't declare bankruptcy for an amount you could easily pay back).
If you have R9 status it will take 7 years to get your credit back AND you will still have to pay back the money. While you are paying back that money you will still be in R9 status till you get caught up with your payments so it may take longer than 7 years to get your credit back.

If you declare bankruptcy it will take you 7 years to get your credit back (actually for the bankruptcy to not show up on your credit report). You will not have to pay back the money and your slate is wiped clean exactly 7 years from the date that your bankruptcy starts. Also you are allowed to keep some assets (e.g. car, RRSP's and so on).
For most people if you are in R9 the better option is bankruptcy though no one will tell you that because you could just imagine what would happen if everyone knew this. There is a lot of misinformation in this thread so I urge you to check the web and also go see a trustee in bankruptcy and ask them what the better option is for your situation.
 

kennyboy

TRIBE Member
Originally posted by butter418
I’ll let you in on a little secret

Once you have R9 status in most cases it is better to declare bankruptcy (depending on the amount of your debt. Don't declare bankruptcy for an amount you could easily pay back).
If you have R9 status it will take 7 years to get your credit back AND you will still have to pay back the money. While you are paying back that money you will still be in R9 status till you get caught up with your payments so it may take longer than 7 years to get your credit back.

If you declare bankruptcy it will take you 7 years to get your credit back (actually for the bankruptcy to not show up on your credit report). You will not have to pay back the money and your slate is wiped clean exactly 7 years from the date that your bankruptcy starts. Also you are allowed to keep some assets (e.g. car, RRSP's and so on).
For most people if you are in R9 the better option is bankruptcy though no one will tell you that because you could just imagine what would happen if everyone knew this. There is a lot of misinformation in this thread so I urge you to check the web and also go see a trustee in bankruptcy and ask them what the better option is for your situation.
This is what I was told today by a credit counseller.

By declaring bankruptcy, you are essentially saying you do not have the means to pay back the money that you owe. You will not lose your car, depending on the make, model, and year, as the crediter will not get what it's worth. In my case, I still have some payments to make. You will make payments to a trustee for approximately 9 months after which you will be free of all debts covered in your bankruptcy.

Your credit will be toast for a while, which it is now, however after a period of 2 - 3 years, you can begin to re-establish credit through credit unions by taking out a small loan for a gic or some other secured asset.
 

Boo

TRIBE Member
Glad there was at least some facts in all these rumours here.

Sometimes you CAN be better off claiming bankrupcy.

The amount of wage garnishments is dependent on your income. If you make over a certain threshold then you pay a about half of the amount you make over that threshold. This lasts for 9 months - not 7 years. If you make under you don't pay any extra.

The fact that you declared bankrupcy stays on your credit for 7 years but so does late or largely overdue payments.

Also you have to pay $1400 for the privilege of declaring bankrupcy - but it can be spread out over the 9 month term.

Also they keep any tax refund you get in that year.

I am waiting till I get my tax refund to declare bankrupcy. I owe like 10k in credit cards due to bad luck at work. I'd rather save 10k as a down payment then pay it to the "man".

I'll just go back to school for the 9 months they can take any excess income :)
 

kennyboy

TRIBE Member
My debt is now way beyond that, thanks to my negligence and the governments unwillingness to work with me.

I still am not convinced this is the route for me, but it's looking more and more likely at this point.

At this point, my only concern is my health and state of mind. Money comes and goes but you only get one go round and the stress just isn't worth it anymore.
 
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Scarlett

TRIBE Member
Originally posted by kennyboy

At this point, my only concern is my health and state of mind. Money comes and goes but you only get one go round and the stress just isn't worth it anymore.
True...and make this a life lesson learned.
I never got as far as considering bankruptcy, but the stress of debt was killing me. It wasn't worth it.
 

kennyboy

TRIBE Member
Yes.

At this point, I just want to start all over. The lessons I've learned are invaluable and I will pass those along to my friends and anyone else that is willing to listen. There's a number of reasons that I'm in this boat, but at the end of the day I am the only one responsible for this situation.

All I want is a fresh start, or at the very least, a fair chance to pay what I owe. If that's unrealistic, then so be it. At that point, you deal with the cards you're dealt and try to make the best of the situation.
 

pr0nstar

TRIBE Member
If you get a good trustee ;)

My office is currently investigating 2 trustees for fraud.
They tend to ... umm take the money and screw the creditors from time to time... sometimes a little too much and the RCMP gets involved.

I will say though, Trustees make some Bling, Bling!

Because in the end, the Trustee gets paid first, then the Creditors... so they always get paid. When the creditors generally get screwed in the end.

Approximatley how much debt are you looking at if you don't mind me asking, because 7 years is a long time for no credit at all.
Also don't forget a lot of places you would rent from would do credit checks, etc... same with some companies.

So I'd take that into consideration for the future. As it might be a good deal for the next year or two, but in the long term it might actually bite you in the ass.

pr0nstar
 

swenard

TRIBE Member
Just to post some correct info...


Bankruptcies: Details of a single bankruptcy remain on a file for six years from the date of discharge, or if not discharged, for seven years from the date the bankruptcy is assigned. Where a second bankruptcy occurs, both bankruptcies will remain on the file for a total of 14 years after the second bankruptcy is discharged.

Credit counselling, consumer proposals to creditors, orderly payment of debt (OPD), voluntary deposit: If you voluntarily enter into a special arrangement with the credit grantor to pay off a debt, this information will remain on your file for three years from the date of final settlement of the debt.

Secured loans, judgements, foreclosures, garnishments: These legal actions will remain on your file for six years from the date that the action was filed against you.

Collections: If a debt has been sent to a collection agency, the details will remain on your file for six years from the date of last activity.
 
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