Filing Bankruptcy in Canada

[NoSup4U]

OP, do your own research and save yourself having to read the incorrect information you are being given here.

A start would be ;

Financial Consumer Agency Of Canada

Anything negative on your credit report will be automatically purged from your file after a maximum of 6 years of completion/last activity in Alberta, whether it be bankruptcy or default on your loan(info quoted directly from Government Of Canada website above for anyone that still try's to argue it). This means your slate is wiped clean unlike the info some others have posted here, and it will not continue to haunt you for years after as banks can only see what is on your credit file. As well, your credit will start to rebuild sooner, meaning you won't be starting from complete scratch. There are a lot of agencies out there that help with this, and provide an orderly payments of debt program. But no matter which route you take, it will affect your credit for a few years.

[Cos]

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[Xtrema]

Originally posted by Cos


Declare bankruptcy and you will never live anywhere worth living. Most decent landlords run credit checks and you wont qualify to buy a place until well into your 30's.

Not only landlords, employers are starting to too, using the score to determine trust worthiness.

I have heard people did not get job because of too low of FICO score.

[sputnik]

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

Then you would be against people declaring bankruptcy.

Unless of course you are dumb enough to believe that the corporations eat the debt the the person declaring bankruptcy walked away from.

[max_boost]

Kind of surprising coming from you honestly, you seem to have it figured out, to enjoy life, how much money you need etc.

Anyway, if you are living at home, I would just suck it up and pay it off. You do NOT want to declare bankruptcy. Short term solution, long term mess. Take responsibility.

How much of a hole are you in?

[CanmoreOrLess]

You really need professional, experienced guidance. Working through a logical roadmap with renegotiated debt, consolidated loans, and if need be as a final resting place bankruptcy. Someone experienced will know the proper way to move forward here, companies you owe money to will be more understanding if a professional is presenting the alternative plan then if you call them up and give it a shot. I would expect creditors to take less than owed should you present a proper case. The government loans, I expect those to be non negotiable.

As suggested by others, call a local loans officer at a bank, non profits are out there as well to assist. Sign nothing until you know the route is the right one. Going alone is no way to go, you need a professional. It is not as big a deal as it feels to you today, the biggest hurdle is manning up, admitting there is a problem and taking action on dealing with it. You could be in a far better place in less than a week or two as it is all sorted out. As one who consolidated what felt like a ton of debts (less than 60K in student loans, car loan, etc) when I was 25, I know this all to be true. Walked out of the office fifty pounds lighter, carried that knapsack of crap around for two years in a worry state of mind.

[flipstah]

I hope your debt is that big to declare bankruptcy. That's financial suicide.

You can get out of it if you hold off any big changes and snowball your way out (pay one CC then work your way up).

I rose out of debt after months of penny-pinching and meticulous planning.

I'm pretty okay right now but I'll be better next year *knock on wood*

[baygirl]

declaring bankruptcy will not clear your student loan unless you have been out of school for 7 years.

[Toma]

Originally posted by CanmoreOrLess
You really need professional, experienced guidance.

[rizfarmer]

Originally posted by NoSup4U
OP, do your own research and save yourself having to read the incorrect information you are being given here.

A start would be ;

Financial Consumer Agency Of Canada

Anything negative on your credit report will be automatically purged from your file after a maximum of 6 years of completion/last activity in Alberta, whether it be bankruptcy or default on your loan(info quoted directly from Government Of Canada website above for anyone that still try's to argue it). This means your slate is wiped clean unlike the info some others have posted here, and it will not continue to haunt you for years after as banks can only see what is on your credit file. As well, your credit will start to rebuild sooner, meaning you won't be starting from complete scratch. There are a lot of agencies out there that help with this, and provide an orderly payments of debt program. But no matter which route you take, it will affect your credit for a few years.

you realize that after going down this road you will have to put a cash deposit down to qualify for even a cell phone? You just pointed out the problem in declairing bankruptcy, creditors will see nothing on your personal bureau meaning at age 30, Spoons will have the credit rating of a 12 year old. So, maybe sometime into his mid to late 30's he will have 'rebuilt' a credit rating.

People have to understand that only a moron "loans officer", which most are, wouldn't be able to find out that you are a previous bankruptcy.

[FixedGear]

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.

best post, thread over. call me batshitcrazy, but toma is the only person that ever makes any sense around here. LOL

[Toma]

Originally posted by rizfarmer


you realize that after going down this road you will have to put a cash deposit down to qualify for even a cell phone?

So, how is this different than just having really bad credit but not having a bankruptcy on file? Lots of people "fail" a cell phone credit check.

Lots of people have to pay cash for deposits on phones, or pay as you go, or utilities etc. My "real" job, I work with people like this all the time.

But I am confused. For people with credit issues, how is paying cash, and not using credit a bad thing? Isn't this the basis of what all the TV shows about getting out of debt promote? lol

[Jonel]

As previously stated, bankruptcy should be THE last resort. Most lenders and banks are more than happy to work with you on a payment plan.

From Grade 11, I have amassed a debt of $28,000, and that's not including my student loan of $14,700. I had a Visa and a Mastercard both of which were maxed out during my college years and through desperation, I started borrowing money from those Payday Advance stores like MoneyMart and CashLoans which was a horrible mistake as the interest for one of those loans alone were up to 6x as much as what I was being dinged for on my credit cards.

Acting like the child that I was, I started dodging their phone calls hoping that they would just forget it. But after a few months of ignoring calls, their letters became more and more confrontational, to the point where they were prepared to take legal action. At the time I had a girlfriend, marriage and family life were a regular topic in our conversations and I was not going to start a life with her with this mess still hanging around me.

Having that in mind, I decided to man up because I wanted the best for her and my future kids. I went to each and every one of those payday loan stores and told them straight up how much trouble I was in and that there is no way I will be able to pay them in one go. To my surprise, ALL 6 of them were more than happy to cut down my interest rate (some even canceled the interest rate) and got me on a payment plan. The same story went with my credit card lenders, both were more than happy to help me get out of the mess I put myself in.

My friend's brother was able to help me get a part time job at a Burger King joint he was managing. And so I was working from 6am to 10pm Monday to Friday and as much overtime as I can get from both jobs on Saturdays and Sundays.

I cut off my phone (which was costing me $100 a month) and switched to a pay-as-you-go one. I started packing my own lunches and pretty much completely stop my bad habit of eating out almost every day. I pretty much limit myself to maybe 1 movie a month if any and going to a bar/club was out of the question. Moved back in with my parents whom understood the situation but I still gave them some money to help with some of the bills (utilities and internet). Did it suck? Like you wouldn't believe. But sacrificing such trivial things to help secure a better future is far more important, and trust me when you start knocking off those loans one by one, in the end you will not have any regret.

I continued those habits that I formed during what seemed to be a hopeless situation and recently have started saving for a house. Other than the remainder on my student loan and car insurance, I've been able to work myself out of being in debt.

Yeah things are pretty bad for you right now if you're declaring bankruptcy but everyone goes through a hard time. It will not be easy for the next few months, even years as in my case. But at the end of the day, there's always a solution to your financial troubles, even though it may seem like there aren't any.

And if you need some tips and tricks on saving money, I can definitely pitch in what I've learned over the past few years.

Good luck and I'm sure you'll find a way out of your mess

[FraserB]

When you apply for loans and credit cards, don't you have to disclose if you filed bankruptcy before? Even if you didn't, the bank is going to know, withouthaving to pull a credit report.

[rizfarmer]

Originally posted by Toma


So, how is this different than just having really bad credit but not having a bankruptcy on file? Lots of people "fail" a cell phone credit check.

Lots of people have to pay cash for deposits on phones, or pay as you go, or utilities etc. My "real" job, I work with people like this all the time.

But I am confused. For people with credit issues, how is paying cash, and not using credit a bad thing? Isn't this the basis of what all the TV shows about getting out of debt promote? lol

previous bankruptcy=bad consumer credit report.... same difference.

To summarize what a consumer credit report means to a creditor: it is a history of your borrowing/use of credit track record and nothing more. If you have decent to good credit, then good for you; you are the average person. If you have a history of not paying accounts, payment delinquency, or non-payment of credit facilities then you're a bad boy and we probably won't give you any money, unless there is a really good story behind your problem. And even then, you would have a hard time dealing with the Banks with a shitty credit report.

No history of borrowing or other credit facilities on your credit report? How can a creditor look back at your track record and assume they will be repaid? They can't cuz you don't have one [history/track record]. And that's where you are if you are a bankruptcy.

People get their panties in a knot over consumer credit reports mostly because they don't understand what they're used for. Credit reports contain A LOT of useful information to a lender. Also be aware that the credit report on you, that a lender has access to, contains WAY more details than the one you can purchase online from any of the reporting agencies.

I don't watch these reality tv debt shows... can't comment on those. these people must be a bunch of donkey's.

[ZenOps]

Yup, student loans in Canada are not absolvable until at least 7 years after you finish (or quit as it may be)

In the US, they completely removed the ability to have debts absolved in 2005. All student debts in the US must be repaid or be forced under some sort of garnishment or seisure of assets.

Pray pray pray that they don't change the rules and make payments mandatory like the US.

[revelations]

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.

There are very specific cases where you could have a corporation setup, offshore accounts, etc. and declaring banktrupcy would make sense ... but this is far removed from the typical consumer norms.

But for the OP's case, no.

[LOLzilla]

Nothing to be feared. Call a professional first. I've had a personal friend go through this and it is not as bad as others make it seem. Remember that on beyond everybody is a millionaire on credit.

[interlude]

Consult a professional, the guys here gave you some solid advice. But you need to sit down with a professional and review your finances.

[raceman6135]

Originally posted by NoSup4U
... an orderly payments of debt program.

In my non-professional opinion, the OPD program might be a better option for you.

http://www.ic.gc.ca/eic/site/oca-bc....g/ca02176.html

And:

http://www.moneymentors.ca/our-servi...unselling.html

- administered through the Court of Queen's Bench (in Alberta)
- covers all unsecured debt, including student loans
- keep all your assets
- property can't be seized
- wages cannot be garnished
- you're out of debt in 3 years
- won't look as bad on your credit report as a bankruptcy

I had a friend go through this program 4 years ago and has learned her lesson.