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 bigthis 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. :poosie:

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...

[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 (http://www.fcac-acfc.gc.ca/eng/resources/publications/budgetmoneymgmt/creditreportscore/underscreditscore-eng.asp)

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]

.

[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.

:thumbsup:

[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 (http://www.fcac-acfc.gc.ca/eng/resources/publications/budgetmoneymgmt/creditreportscore/underscreditscore-eng.asp)

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? :dunno: Isn't this the basis of what all the TV shows about getting out of debt promote? lol :love:

[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 :thumbsup:

[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? :dunno: Isn't this the basis of what all the TV shows about getting out of debt promote? lol :love:

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.nsf/eng/ca02176.html

And:

http://www.moneymentors.ca/our-services/credit-counselling.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.

[Cos]

.

[CompletelyNumb]

I'd be curious to know how many of the people giving advice here have actually been through bankruptcy, or have seen it first hand...

If you plan on being a credit card baller like half of this forum, then yes, bankruptcy is not the best option for you. It is not, however, the financial suicide some would have you believe.

It's very easy to research the good and bad side effects this will have on your life. But your best bet is to consult a professional, not an anonymous poster on an internet forum.

There are many cases where bankruptcy is your best option. In my opinion yours is not one of those. But since it's already crossing your mind, professional advice would do you some good.

[nickyh]

If you plan on being a member of a professional association it could be a problem.
I am a CGA, and every year with my annual dues payment i am asked if i filed for bankruptcy.... now i'm not sure what issues this could bring if i ever did.

[codetrap]

Originally posted by nickyh
If you plan on being a member of a professional association it could be a problem.
I am a CGA, and every year with my annual dues payment i am asked if i filed for bankruptcy.... now i'm not sure what issues this could bring if i ever did. They take away your CGA status because if you have to file then it's obvious you suck too much with financial matters to be a CGA.:nut:

In reality, it sounds like they simply want to monitor the proceedings in order to decide whether or not to investigate any violations in the code of ethics.

[ramminghard]

Originally posted by codetrap
They take away your CGA status because if you have to file then it's obvious you suck too much with financial matters to be a CGA.

In reality, it sounds like they simply want to monitor the proceedings in order to decide whether or not to investigate any violations in the code of ethics. This applies to many professional associations, not just the CGA. P.Eng for example which has little to do with "sucking at financial matters".

[Toma]

Originally posted by ramminghard
This applies to many professional associations, not just the CGA. P.Eng for example which has little to do with "sucking at financial matters".

Not true. I know a Lawyer and a Engineer that both went through bankruptcy and did not lose their professional standing.

[codetrap]

Originally posted by ramminghard
This applies to many professional associations, not just the CGA. P.Eng for example which has little to do with "sucking at financial matters". Hopefully, it was clear to you that I was kidding about the first part.

[silvercivicsir]

I wouldn't trust a Engineer or a Lawyer who has filled Bankruptcy, they should be able to handle their own finances as a minimum..

[rizfarmer]

Originally posted by silvercivicsir
I wouldn't trust a Engineer or a Lawyer who has filled Bankruptcy, they should be able to handle their own finances as a minimum..

Why not? bankruptcy may have been part of how they planned to handle their finances. there is nothing illegal or immoral about bankruptcy; posting in threads like this without having a clue about what you are talking about should be illegal.

[silvercivicsir]

wow really? part of how they planned to handle their finances?? To me, it shows they are incompetent to handle their own finances, and most likely would be incompetent in handling their professional duties.. but that's just me.


Originally posted by rizfarmer


Why not? bankruptcy may have been part of how they planned to handle their finances. there is nothing illegal or immoral about bankruptcy; posting in threads like this without having a clue about what you are talking about should be illegal.

[alloroc]

There are some other options. I would avoid bankruptcy but I would consult an insolvency firm.

The counseling admins at those firms can help you a lot.

[C_Dave45]

Originally posted by CompletelyNumb
I'd be curious to know how many of the people giving advice here have actually been through bankruptcy, or have seen it first hand...

If you plan on being a credit card baller like half of this forum, then yes, bankruptcy is not the best option for you. It is not, however, the financial suicide some would have you believe.

It's very easy to research the good and bad side effects this will have on your life. But your best bet is to consult a professional, not an anonymous poster on an internet forum.

There are many cases where bankruptcy is your best option. In my opinion yours is not one of those. But since it's already crossing your mind, professional advice would do you some good.

Thought I'd pop in here for a laugh and lo and behold I see the most intelligent post above. Nothing more needs to be said.

/thread.



Originally posted by silvercivicsir
wow really? part of how they planned to handle their finances?? To me, it shows they are incompetent to handle their own finances, and most likely would be incompetent in handling their professional duties.. but that's just me.



Perfect example of someone who jumps to conclusions and opens their yap without probably any experience in the topic at all.

Bankruptcies can be the result of OTHER companies who don't pay their bills. I've seen many a small business get burned by others, which in turn bankrupts them.

IE: A small business (engineer, lawyer, etc) takes on a HUGE client. Biggest contract ever...takes up 6 months of manpower, etc. Huge firm goes tits up and can't pay the small business. Burns them for half a million dollars. Small business has no choice but to claim bankruptcy.
This somehow translates into "incompetent to handle their own finances"?

[rizfarmer]

Originally posted by silvercivicsir
wow really? part of how they planned to handle their finances?? To me, it shows they are incompetent to handle their own finances, and most likely would be incompetent in handling their professional duties.. but that's just me.



yea really, what's not to understand? again, bankruptcy is an option available to individuals as a means to deal with their finances. Of course it should usually be the last option, but the fact that you feel a professional is incompetent for claiming personal bankruptcy has fuck all to do with anything. How would you know if the engineer that designed the building you are sitting in isn't bankrupt??

I don't see the connection between personal finance and the ability to perform your duties as a lawyer or engineer.

Now, if a lawyer cheated the bar, or if an engineer was known to cut corners in design or construction, then what would probably be grounds to not trust said professional.

[codetrap]

Originally posted by rizfarmer
yea really, what's not to understand? again, bankruptcy is an option available to individuals as a means to deal with their finances. Of course it should usually be the last option, but the fact that you feel a professional is incompetent for claiming personal bankruptcy has fuck all to do with anything. How would you know if the engineer that designed the building you are sitting in isn't bankrupt??

I don't see the connection between personal finance and the ability to perform your duties as a lawyer or engineer.

Now, if a lawyer cheated the bar, or if an engineer was known to cut corners in design or construction, then what would probably be grounds to not trust said professional. Bankruptcy is essentially cheating your creditors out of the money you owe them. I wouldn't trust anyone that planned to cheat someone else as part of a "sound financial strategy". Goes to showing the type of character they have, after all, if they're willing to cut corners in their personal finance..... what else are they willing to cut corners on. And if they went bankrupt due to incompetence at financial matters.. then well.... perhaps they're not so terribly competent at other things.

It really depends on the reason they had to declare, but I would expect a highly paid professional with years of training to keep their shit together in ALL aspects of their lives.

[ZenOps]

Its socially acceptable in the US. Donald Trump filed 4 times, so far.

Sometimes you have winner and sometimes you have losers, if you have creditors that are stupid enough to put money into a loser - then how is that your fault?

I'm very surprised the Donald did not run for presidency, he would be a perfect fit for the US - experiment like crazy, go into massive debts and then just print more money (and make a jar of peanut butter cost $20) It worked before, it will always work in the future right? Canada wouldn't dare call out the US on that.

[codetrap]

Originally posted by ZenOps
Its socially acceptable in the US. Donald Trump filed 4 times, so far.

Sometimes you have winner and sometimes you have losers, if you have creditors that are stupid enough to put money into a loser - then how is that your fault?

I'm very surprised the Donald did not run for presidency, he would be a perfect fit for the US - experiment like crazy, go into massive debts and then just print more money (and make a jar of peanut butter cost $20) It worked before, it will always work in the future right? Canada wouldn't dare call out the US on that. He has never filed for personal bankruptcy.

[lasimmon]

Originally posted by codetrap
Bankruptcy is essentially cheating your creditors out of the money you owe them. I wouldn't trust anyone that planned to cheat someone else as part of a "sound financial strategy". Goes to showing the type of character they have, after all, if they're willing to cut corners in their personal finance..... what else are they willing to cut corners on. And if they went bankrupt due to incompetence at financial matters.. then well.... perhaps they're not so terribly competent at other things.

It really depends on the reason they had to declare, but I would expect a highly paid professional with years of training to keep their shit together in ALL aspects of their lives.

A lot of people go bankrupt due to companies they are consulting for don't or can't pay them.

[ZenOps]

Originally posted by codetrap
He has never filed for personal bankruptcy.

Doesn't matter, he did personally benefit from the bankruptcies.

Winner companies get to keep their money, loser companies go bankrupt and all of the monetary loss is placed upon the stupid ass creditors.

This does create a problem when "commodity houses" like MF global and PFG go bankrupt. When you order up a hundred thousand tons or so of corn for your business, and it doesn't show up - that is a problem. But if Facebook or a Trump company goes bankrupt its no big deal.