Filing Bankruptcy in Canada

[Spoons]

I've been considering it for awhile now. Made mistakes as a kid, went into a program I didn't like, huge overhang of a student loan. I was a total idiot.

But alas one can not live in the past.

I've been reading up on a lot of it, and student loans are not automatically discharged until 10 years after being a full-time student. I'm unfortunately at 5.

My credit card is in decent shape, and my two government loans I can handle. They are relatively small payments and I have them almost paid off.

What really keeps me down is the rather large student line of credit. Some stupid stuff went on with that, I won't go into detail, but its big. Now obviously it is no longer a line of credit as I am just paying it off now, but RBC continuously bones me on it, rates have been steadily increasing, and honestly I'm living in my fathers house, I would like to move out but all this seriously holds me back.

Is it only government loans or those likes that fall under the 10 year rule? I'm under the assumption that my student line of credit has just been passed over to a "personal loan" and repaying it.

Has anyone filed? How is the process like.

Basically I'm sort of looking down this road in the course that this debt is holding me back. There are lots of things I want to do while I'm young, and the path I'm on, I won't have this thing paid off for another 10 years. And buying a house or any credit like things is not in my plans for a very long time (if ever, I have my reasons).

Please keep personal comments to yourself. I'm not asking for people to tell me I'm an idiot for the mistakes I've made, I'm looking for advice.

[Sugarphreak]

...

[sputnik]

Based on your Beyond profile, you are 23.

Declaring bankruptcy at 23 is never a good idea. Your credit will be trash for 7 years and then you have to start to build it back up again.

Your best bet is just to consolidate your outstanding loans and get a decent repayment plan going. Then start throwing any extra money (birthday, christmas, work bonuses etc) you have at the balance. Also, if you are living with your Dad why are you so broke? You have nearly no expenses. Sell everything you own (phones, computers, cars... EVERYTHING), get a second job work your ass off and pay your debt.

I am getting sick and tired of people (especially those currently in their 20s) who refuse to own up to and actually LEARN from their mistakes and instead just want to take the "easy" road out of their problems.

It also might be impossible to declare bankruptcy while you are living with your Dad since you will probably be still considered a dependant.

[ercchry]

this is alberta, if you are able bodied you have no excuse. pull up your skirt and work on a rig for a year. much better option than fucking yourself even further credit wise

[Spoons]

Originally posted by sputnik
Based on your Beyond profile, you are 23.

Declaring bankruptcy at 23 is never a good idea. Your credit will be trash for 7 years and then you have to start to build it back up again.

Your best bet is just to consolidate your outstanding loans and get a decent repayment plan going. Then start throwing any extra money (birthday, christmas, work bonuses etc) you have at the balance. Also, if you are living with your Dad why are you so broke? You have nearly no expenses. Sell everything you own (phones, computers, cars... EVERYTHING), get a second job work your ass off and pay your debt.

I am getting sick and tired of people (especially those currently in their 20s) who refuse to own up to and actually LEARN from their mistakes and instead just want to take the "easy" road out of their problems.

It also might be impossible to declare bankruptcy while you are living with your Dad since you will probably be still considered a dependant.

Agree'd. I'm just looking for that fresh start. Mainly why I plan on buying nothing with credit (aside from a house much later in life, again if ever), I've learned my lesson.

I'm not refusing, but I'm looking into all options I have at hand.

What do these loan restructures entail? I assume this would be under debt consolidation? Where could I look into this?

[tenth]

Originally posted by Spoons
What really keeps me down is the rather large student line of credit. Some stupid stuff went on with that, I won't go into detail, but its big.

...

There are lots of things I want to do while I'm young, and the path I'm on, I won't have this thing paid off for another 10 years.

Hopefully you're not trying to weasel your way out of paying amounts you borrowed and are definitely able to pay off (even if it is a long time, acting dumb has consequences), in order to do things while you're young that you might call stupid in another 4-5 years.

[tirebob]

I have never gone through it personally so I can't really give you advice on your specific questions but generally the effects vary. A lot depends on what you want to do in the future of course. Getting future loans, buying a house, renting a house, applying for certain jobs and even opening your own business can all be dramatically affected by personal bankruptcy. But that said, I know people who have gone through it and they have come out fine, have good jobs, still bought a house and have learned responsibility. Hopefully it all works out well for you man!

[s3v3n]

I've been reading up on a lot of it, and student loans are not automatically discharged until 10 years after being a full-time student. I'm unfortunately at 5.

so sounds like filing wont help with this

My credit card is in decent shape, and my two government loans I can handle. They are relatively small payments and I have them almost paid off.

not worth filing for this stuff

What really keeps me down is the rather large student line of credit. Some stupid stuff went on with that, I won't go into detail, but its big

this is basically the only reason youre filing? because you dont want to continue to make payments against this..?

I would like to move out but all this seriously holds me back.

Basically I'm sort of looking down this road in the course that this debt is holding me back. There are lots of things I want to do while I'm young, and the path I'm on, I won't have this thing paid off for another 10 years.

wouldnt filing for bankruptcy hold you back even more?
this will affect everything.
want utilities?
want a cell phone?
want internet?
want to rent a place?
want to get a job?
want a car?

buying a house may not seem like a big deal now, but it might in 5 years. think about yourself 5 years ago vs today. now think of yourself today vs in 5 years. might be a totally different person with different priorities.

even renting, many landlords will run credit checks as part of the app process. another thing that surprised me was that even employers are now doing this.

it sounds like youre sick of making payments on your debt and feel like you are wasting time/money pumping payments into it. there are things youd rather be doing. this is not a unique situation... everyone with debt feels this way. welcome to the club :\

if the debt load is large it probably feels like youll have it forever and it is a constant burden hanging over you. so you need to actually break it down to give yourself a finish line. sit down and work out your monthly expenses; sounds like your expenses should be minimal. maximize the amount that you can put towards your #1 problem (your debt) and plug everything into a spreadsheet. this way you can see how your debt will shrink over time and how long it will take to pay off.

keep in mind that you are still fairly young and will likely be increasing your salary over the coming years. as your annual salary increases, the debt gets paid off much faster and it becomes smaller relative to the amount of money that you have coming in.

right now you are just feeling overwhelmed. sit down and work it out. give yourself some goals and some timeframes.

[rizfarmer]

You want to avoid bankrupcty if at all possible. It sounds like you may have considered some of the negative affects a bankruptcy status may have on your credit however this is not a 7-10 year process to get back into a position to command normal types of credit facilities with reasonable pricing from the Banks.

You said you don't plan on borrowing or buying a house in the future but the biggest problem with this state of mind is that you cannot predict the future, nor your future needs. What I mean by this is what if you enter into bankruptcy then sometime down the road change your mind and decide you do want to mortgage a house. What if you decide you want to finance a car? What if you are presented with a once in a lifetime business opportunity where the only opportunity for you to participate is by buying in, and you need to borrow the money (from an institution). What if you knock up your gf and need to borrow some short term cash to get by for a year?

Bankruptcy should be considered an extreme last resort solution for those who can no longer live up to their debt obligations because of a devastating health problem or some type of other circumstance which has destroyed their chance to generate income i.e. accident or criminal conviction etc. Banks will look at you as a deadbeat for much longer than 7 years- leaving you with only pricey credit options.

This is not you. Anyone should be able to earn at least $50k/year even if that involves two jobs. Entering into bankruptcy will cause you significant headache (and heartache) down the road. Approach Royal Bank ask them to put you into a borrowing scenario that you can handle; if that fails, there are several agencies that help people in your circumstance. It's hard work but nothing compared to the problems bankruptcy will cause you later on down the road.

[Spoons]

Originally posted by rizfarmer
You want to avoid bankrupcty if at all possible. It sounds like you may have considered some of the negative affects a bankruptcy status may have on your credit however this is not a 7-10 year process to get back into a position to command normal types of credit facilities with reasonable pricing from the Banks.

You said you don't plan on borrowing or buying a house in the future but the biggest problem with this state of mind is that you cannot predict the future, nor your future needs. What I mean by this is what if you enter into bankruptcy then sometime down the road change your mind and decide you do want to mortgage a house. What if you decide you want to finance a car? What if you are presented with a once in a lifetime business opportunity where the only opportunity for you to participate is by buying in, and you need to borrow the money (from an institution). What if you knock up your gf and need to borrow some short term cash to get by for a year?

Bankruptcy should be considered an extreme last resort solution for those who can no longer live up to their debt obligations because of a devastating health problem or some type of other circumstance which has destroyed their chance to generate income i.e. accident or criminal conviction etc. Banks will look at you as a deadbeat for much longer than 7 years- leaving you with only pricey credit options.

This is not you. Anyone should be able to earn at least $50k/year even if that involves two jobs. Entering into bankruptcy will cause you significant headache (and heartache) down the road. Approach Royal Bank ask them to put you into a borrowing scenario that you can handle; if that fails, there are several agencies that help people in your circumstance. It's hard work but nothing compared to the problems bankruptcy will cause you later on down the road.

This was the answer I was looking for.

Thanks guys, I will definitely look into other routes. I just wanted to see what it was all about.

[vengie]

As mentioned above, suck it up and work on a rig for a year or two.

you made the mess, now man up and fix it.

[Toma]

Many Many years ago, a Lawyer friend of mine went through bankrupcy.

Shit happens, and he says it's the best thing he ever did.

Every case is different, but why spend 7 years MAYBE digging yourself out of a hole if it's deep enough, and no guarantee you will get out, versus taking a hit on your credit and all that entails, but starting fresh.

I would consult a bankruptcy expert, and get ALL the details, and possible ramifications.


This is not a moral society, and our banking system, corporate system, etc are not moral, I would not worry about using the resources available to you if it beneficial to you, and of course legal.

[Lex350]

Originally posted by Toma
Many Many years ago, a Lawyer friend of mine went through bankrupcy.

Shit happens, and he says it's the best thing he ever did.

Every case is different, but why spend 7 years MAYBE digging yourself out of a hole if it's deep enough, and no guarantee you will get out, versus taking a hit on your credit and all that entails, but starting fresh.

I would consult a bankruptcy expert, and get ALL the details, and possible ramifications.


This is not a moral society, and our banking system, corporate system, etc are not moral, I would not worry about using the resources available to you if it beneficial to you, and of course legal.

Well in that case I hope we don't have you crying morality in any of your posts in the future. You are the king of double standards.

[KrisYYC]

I've heard those debt restructure payment programs trash your credit just as bad as a bankruptcy. Anybody know if this is true?

[Sugarphreak]

...

[Type_S1]

Declaring Bankruptcy is never a good thing if you plan on living a normal financial life within the next 10 years. It isn't all rainbows and unicorns like some think it is. The government will call BS on you if you try to hide anything and will monitor every cent you make or spend on anything for many years after you declare. Your debt simply won't just dissapear...many times you will just be put on a payment plan.

You want to go on a vacation? Good luck...not happening after you declare bankruptcy because you have obligations the government holds you to.

Now be a man...I am younger then you, made stupid choices, spent way too much money on partying, gambling & booze...pretty much lived like I was a rockstar with my spending habits. You know where I am? The only debt I have is a mortgage and I was able to buy cars, furnish a house and afford to vacation. Now get your shit together, stop being so sheltered and grow up.

If you are seriously considering it though you need to go see a bankruptcy lawyer and understand what exactly will happen to you after you declare because you don't get off as easy as most think.

[FraserB]

Originally posted by Toma
Many Many years ago, a Lawyer friend of mine went through bankrupcy.

Shit happens, and he says it's the best thing he ever did.

Every case is different, but why spend 7 years MAYBE digging yourself out of a hole if it's deep enough, and no guarantee you will get out, versus taking a hit on your credit and all that entails, but starting fresh.

I would consult a bankruptcy expert, and get ALL the details, and possible ramifications.


This is not a moral society, and our banking system, corporate system, etc are not moral, I would not worry about using the resources available to you if it beneficial to you, and of course legal.

Lets see. Pay it off over 7 years and come out with credit intact, still able to buy a car or a house and get approved for a credit card. Not to mention living up to your obligations.

Or.

Take the quick and easy route now, have shit credit and have an impossible time getting credit in the future. Having to say yes when an institution or employer asks if you have even declared. On the other hand, you'll be able to get a ballin pre-paid credit card.

[Toma]

Originally posted by rotten42



Well in that case I hope we don't have you crying morality in any of your posts in the future. You are the king of double standards.

Not at all. I have one basic standard, people first. Government second, corporations last.

Simple. Everything else pretty well stems from there.

Nothing wrong with bankruptcy, it's why it's there. I have never needed it, nor do I expect to, but I work with people daily that need all sorts of forms of assistance, from social service, to AISH, to workers comp, food bank, medical etc. etc. And therefore recognize that in some cases, there is a need to use the resources available.

As for student loans, can you not apply for a grant. I know people that out of school owed $30,k, and since they didn't get a job right away, there were allowed to apply out of financial need, and had their loan debts cut in half.

[Toma]

Originally posted by FraserB


Lets see. Pay it off over 7 years and come out with credit intact, still able to buy a car or a house and get approved for a credit card. Not to mention living up to your obligations.

Or.

Take the quick and easy route now, have shit credit and have an impossible time getting credit in the future. Having to say yes when an institution or employer asks if you have even declared. On the other hand, you'll be able to get a ballin pre-paid credit card.

Like I said, situation specific.

There are times for sure, I would agree, button down the hatches, get your head down, and work your way out.

Other times, it's just not feasible. Like if you have to live away from home, you make $15 an hour after taxes, but owe $60k. Not gonna happen. Interest alone will keep you running a hamster wheel, and good luck getting a low interest consolidation loan with already bad credit and high debt

[Feruk]

I remember reading somewhere that bancrupcy does not wipe away student loan debt...