Personal Finance

Emergency Help Requested (Bankruptcy)

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  • Nov 14th, 2014 2:11 pm
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Jr. Member
Nov 8, 2014
161 posts
31 upvotes
Scarborough, ON
mikeymike1 wrote: With no income how are you supporting yourself?? Not living inside a cardboard box are you?
The cost of bankruptcy is approx 2-3k

What's the current status of the 3 credit products?(R3, R4, R9)? or are there multiple cards and you're just totalling them under respective categories?
If its just one MC that's maxed out at $10,700 the likelihood of that creditor litigating against you will be greater and more likely due to the debt amount than charging the account off and selling it to a 3rd party collections.

You should prepare a preliminary financial statement for yourself to determine which road to take, CP or bankruptcy.
Search Form 13.0 Ontario courts financial statement. PDF should be available.
Form 79 Statement of Affairs

You're going to need to fill this out anyways if you go either way. The creditors you may default on may even want a copy.
I'm currently on EI and I just have the 2 credit cards and 1 line of credit. I'm not sure what the status of the cards are. I've been making the minimum payments until about 2 months ago on the MasterCard, last month on the VISA and this month on the LOC.

Thanks to all who replied, but I guess I was looking more for some step-by-step advice from someone who's been through this before.
Jr. Member
Nov 16, 2014
128 posts
11 upvotes
Markham, ON
DoughHead wrote: I'm currently on EI and I just have the 2 credit cards and 1 line of credit. I'm not sure what the status of the cards are. I've been making the minimum payments until about 2 months ago on the MasterCard, last month on the VISA and this month on the LOC.

Thanks to all who replied, but I guess I was looking more for some step-by-step advice from someone who's been through this before.
do you own anything you can sell to help pay for the bills so that you wont have to file bankruptcy?
if you have a nice car, you can definitely live without
Jr. Member
Nov 8, 2014
161 posts
31 upvotes
Scarborough, ON
gosia29 wrote: do you own anything you can sell to help pay for the bills so that you wont have to file bankruptcy?
if you have a nice car, you can definitely live without
Unfortunately, no. I don't have any assets (home, car, etc.)

My preference would be to pay these debts off without bankruptcy or CP. It's what I've been trying to do up until a few months ago. It just doesn't seem realistic at all at this point.
Jr. Member
Nov 16, 2014
128 posts
11 upvotes
Markham, ON
DoughHead wrote: Unfortunately, no. I don't have any assets (home, car, etc.)

My preference would be to pay these debts off without bankruptcy or CP. It's what I've been trying to do up until a few months ago. It just doesn't seem realistic at all at this point.
Where do you live right now, do you pay for rent? try getting a room mate, and as another forum member suggested you can work anywhere like timmies, gas stations while you are waiting for a job in your area.
Deal Fanatic
Aug 27, 2004
7673 posts
1131 upvotes
Toronto, ON
DoughHead wrote: Thanks to all who replied, but I guess I was looking more for some step-by-step advice from someone who's been through this before.
I fear that there are unlikely to be too many recently-discharged bankrupts around here...

I do have a friend who did go through bankruptcy, but his situation was a little simpler - due to a missed payment, one lender demanded all of their money ($20K+) in the next 3 weeks or so, so his debt house of cards collapsed quickly and bankruptcy was the only option...
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User avatar
Dec 11, 2005
20136 posts
2964 upvotes
What is the sequence of events by which someone could amass this much credit card debt? My mind can't even wrap around it. I am not built for this kind of irresponsibility.
To be nobody but yourself - in a world which is doing its best, night and day, to make you everybody else - means to fight the hardest battle which any human being can fight; and never stop fighting. -- E. E. Cummings
Deal Expert
Oct 7, 2010
15536 posts
5790 upvotes
Not particularly sure how the op can rack up that much debt with almost not asset to speak of. The op need to find a job and cut all his expenses except for rent, cheap food, and bus pass. At 33, he really need to get his act together. Filing bankruptcy is really not an option because no one will lend him any money for years. Good luck financing anything in the next 7 to 8 years.
Deal Fanatic
Aug 27, 2004
7673 posts
1131 upvotes
Toronto, ON
spike1128 wrote: Not particularly sure how the op can rack up that much debt with almost not asset to speak of.
It's (unfortunately) not exactly hard to rack up debt by spending on things other than durable resellable goods...
Deal Fanatic
Apr 16, 2007
8134 posts
3485 upvotes
Financial District B…
DoughHead wrote: I'm currently on EI and I just have the 2 credit cards and 1 line of credit. I'm not sure what the status of the cards are. I've been making the minimum payments until about 2 months ago on the MasterCard, last month on the VISA and this month on the LOC.
EI? What would your profession be?

DoughHead wrote: Thanks to all who replied, but I guess I was looking more for some step-by-step advice from someone who's been through this before.
Overview of CP process:
http://www.ic.gc.ca/eic/site/bsf-osb.ns ... 02051.html

Overview of BK process:
http://www.ic.gc.ca/eic/site/bsf-osb.ns ... 02048.html

After BK:
http://www.ic.gc.ca/eic/site/bsf-osb.ns ... 03128.html
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again
Sr. Member
Jan 16, 2010
629 posts
21 upvotes
brunes wrote: What is the sequence of events by which someone could amass this much credit card debt? My mind can't even wrap around it. I am not built for this kind of irresponsibility.
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Deal Addict
Feb 5, 2009
2808 posts
940 upvotes
Newmarket
There are plenty of jobs around, it really pisses me off that bankruptcy is allowed. When I put mye in difficult financial position I worked two jobs, bank during the day pizza at night. One of my friend nds is a single mother with two kids and two low paying jobs, how come op can't find a job. We all make mistakes, some choose to take care of it, others prefer handouts. Op, if you lent people money would it be fine with you if they didn't pay you back
Deal Fanatic
Aug 27, 2004
7673 posts
1131 upvotes
Toronto, ON
Homerhomer wrote: Op, if you lent people money would it be fine with you if they didn't pay you back
The OP is not a large, diversified financial institution that charges 19%/year interest in order to properly account for the risk their shareholders are taking...

The reality is, these credit card lenders build a business on lending money to people who are at least slightly marginally irresponsible. (People who churn credit cards and then always pay them off in full aren't the industry's dream customer. The best customer is irresponsible enough to pay lots of interest forever...) Every once in a while, 'marginally irresponsible' turns into bankrupt. It's part of the business that those companies willingly chose to enter.
Deal Addict
Feb 5, 2009
2808 posts
940 upvotes
Newmarket
VivienM wrote: The OP is not a large, diversified financial institution that charges 19%/year interest in order to properly account for the risk their shareholders are taking...

.
I am sorry, I thought it was Visa's CEO posting here ;-), I get your point though, they do prey on people's weaknesses, still doesn't make it right. There are plenty of jobs available, Sorry no sympathy from me, I would be happy to share my own experiences and advise which worked great for getting me out of debt. In this case these he or she is looking for more handouts. Wish people wouldn't be allowed to walk away from the debts they racked up unless it wasn't their own fault (ei forgiveness for accidents victims or other tragic events).
Deal Fanatic
Aug 27, 2004
7673 posts
1131 upvotes
Toronto, ON
Homerhomer wrote: I am sorry, I thought it was Visa's CEO posting here ;-), I get your point though, they do prey on people's weaknesses, still doesn't make it right. There are plenty of jobs available, Sorry no sympathy from me, I would be happy to share my own experiences and advise which worked great for getting me out of debt. In this case these he or she is looking for more handouts. Wish people wouldn't be allowed to walk away from the debts they racked up unless it wasn't their own fault (ei forgiveness for accidents victims or other tragic events).
I'm not saying I am sympathetic or not, but bankruptcy... is not exactly fun or a "handout". You spend a year or two having everything in your life scrutinized by your trustee, you lose essentially all of your assets (if you had any), then for at least a few more years, you have no access to credit in any reasonable way (or even things that require credit such as a cell phone). Then there can be career consequences - certainly for a lot of regulated occupations, being a former bankrupt is a problem... (e.g. I don't believe bankrupt lawyers are allowed near trust accounts)

I do agree that the OP is, based on the information we have, not the most sympathetic candidate for bankruptcy out there. But if he's in a deep unsurmountable hole...
Deal Fanatic
Apr 16, 2007
8134 posts
3485 upvotes
Financial District B…
Homerhomer wrote: There are plenty of jobs around, it really pisses me off that bankruptcy is allowed. When I put mye in difficult financial position I worked two jobs, bank during the day pizza at night. One of my friend nds is a single mother with two kids and two low paying jobs, how come op can't find a job. We all make mistakes, some choose to take care of it, others prefer handouts. Op, if you lent people money would it be fine with you if they didn't pay you back
The fact that he is collecting E.I. means he really has not been out of work all that long.
Furthermore the fact his accounts are still in somewhat good standing as stated means he had no real issues servicing the debt prior to E.I.
Being 2 months behind on one of the accounts is hardly justification to jump on the BK bandwagon.
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again
Jr. Member
Nov 8, 2014
161 posts
31 upvotes
Scarborough, ON
Homerhomer wrote: There are plenty of jobs around, it really pisses me off that bankruptcy is allowed. When I put mye in difficult financial position I worked two jobs, bank during the day pizza at night. One of my friend nds is a single mother with two kids and two low paying jobs, how come op can't find a job. We all make mistakes, some choose to take care of it, others prefer handouts. Op, if you lent people money would it be fine with you if they didn't pay you back
Run for office on the promise that you will outlaw bankruptcy (for corporations as well as individuals) and build debtors prisons. Good luck with that.

And if I decided to open a business and charged interest for the privilege, I'd make sure I familiarized myself with Canadian law and how it dealt with someone who was unable or unwilling to pay me back.

Lastly, I have lent money that wasn't paid back. It sucks. But that's life. Live and learn.
Deal Addict
Feb 5, 2009
2808 posts
940 upvotes
Newmarket
DoughHead wrote: Run for office on the promise that you will outlaw bankruptcy (for corporations as well as individuals) and build debtors prisons. Good luck with that.

And if I decided to open a business and charged interest for the privilege, I'd make sure I familiarized myself with Canadian law and how it dealt with someone who was unable or unwilling to pay me back.

Lastly, I have lent money that wasn't paid back. It sucks. But that's life. Live and learn.
I asked this before, why aren't you working?
Plenty of places are hiring, stores, restaurants, landscaping companies, construction, oil sands areas are looking for people to come and work, buy and sell stuff on ebay.........if I had to list all the possibilities I would run out of ink. Secondly why can't you find a job in your profession?
Deal Addict
Feb 5, 2009
2808 posts
940 upvotes
Newmarket
VivienM wrote: I'm not saying I am sympathetic or not, but bankruptcy... is not exactly fun or a "handout". ...
Ok, maybe handout wasn't the appropriate term, possibly bailout would fit better, regardless I think if one makes mistakes they should be the once responsible for digging themselves out of it, and not having others foot the bill. $38K in debt in absolute term is a small amount, my debt was higher than that, I think student loans can be extended or delayed, and creditors can be approached to work out more appropriate terms, they would rather earn less than loose money. It is really simple, make more money than you spend and put the excess toward the loans. For many people it meant working two jobs and no weekends.
Banned
User avatar
Jun 2, 2009
2738 posts
181 upvotes
Toronto
you should consolidate the debt and pay it off monthly, 38k shouldn't be more than 500 a month and that is nothing if you're working full time, keep applying for interest relief on the student loan until you finish paying the credit card debt.bankruptcy is like super last resort, not a chance of any credit extended to you for another 7 years. That will be rough since everything requires credit even getting a cell phone.
Idle hands are the devils playthings
Deal Addict
Jan 14, 2011
1151 posts
340 upvotes
DoughHead wrote: Hi all,

I'd really appreciate some advice. I ran my life into a ditch and I'd like to get myself out of this position and get back on track as soon as possible. Relevant info is as follows:

Age: 33
Credit Card / LOC Debt: $38,200 [VISA (9,000), MasterCard (10,700), Line of Credit (18,500)]
Student Loans: $47,800 (was a student as recently as 5 years ago, so I believe I'm stuck with this).
Income: $0

I've spent the past 5 years alternating between paying off debts while working and then racking them up when unemployed. It's reached the point where I can't afford to make any payments at all. The interest rate on my LOC was jacked through the roof and that was the last straw. Even when I become employed (hopefully ASAP) I know I won't be able to make a dent on this debt. The minimum payments alone will wipe out my entire pay check.

I don't feel good about this at all and I view it as a last resort, but I think it's in my best interest to declare bankruptcy. I'm not getting any younger and I think I need a fresh start.

Can anyone offer advice on how I should proceed? Anyone been through it before? I know step 1 is finding a trustee, but I have no income and don't know who to trust.
http://youtu.be/kzsSpDyBc_4

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