Credit Cards

Locked: Should I declare bankruptcy? 76k in DEBT

  • Last Updated:
  • Apr 11th, 2020 8:21 pm
Tags:
None
[OP]
Banned
Jan 17, 2019
6 posts
10 upvotes

Should I declare bankruptcy? 76k in DEBT

Hello Everyone,

I came on here for advice back in Jan and tried to really implement the changes and advice given but it seems that I have a serious problem with credit and spending, etc. I'm not sure what to do anymore and I'm extremely stressed thinking about this everyday. Please advice the best route to take.

Here is my thread back in Jan: http://forums.redflagdeals.com/60k-debt ... t-2258615/

Curent Income: $1775 NET bi-Weekly.

Current Debts in my Name:

Student Loan = $9000 (6.5%)
Capital 1 CC = $9000 (21%).
Unsecured PLOC = $5000 (12%).
Fairstone Loan = $9250 (37%).
Easyfinancial Loan = $8850 (46%)
Moneymart Loan = $2600 (47%)
Cashmoney Loan = $2500 (47%)

Debts in my Mom's name:

BMO Car Loan = $16,000 (7%).
MBNA CC = $13,500 (24%)

Monthly Expenses:

Rent: $1355 (Lease ends in Dec 2019)
Cell: $100 (Includes 20 GB)
Internet: $55
Food: $200
Car Payments: $450
Insurance: $390
Dog Food: $180 (2 Dogs)
Fairstone Loan: $368
Gas: $250
Personal: $150 - $300 (Grooming, Netflix, cleaning supplies, etc).
Easyfinancial loan: $360
Cash money loan: $100
Moneymart loan: $120
Simplii loan: $100
MBNA loan: $400
Cap 1 CC: $250
Osap: $85

Should I declare bankruptcy? If i'm not mistaken then I will only have to repay my OSAP loan and pay the bankruptcy amount. The other debts in my mother's name I would continue to pay off.
I prefer not to go bankrupt because I have $25,000 coming to me in about 6 months and don't want to **** up my credit for the next 6 years...
Share:
164 replies
Member
Jun 14, 2018
458 posts
472 upvotes
You know you had a problem and then you went out of your own way to make it even worse over the last 5 months. There's no hope for you. Any advice given to you will likely only delay the inevitable.
Deal Addict
Jan 1, 2017
1183 posts
1024 upvotes
Move in with your mom, get rid of the dogs and the car. You are living beyond your means on credit. You will be back in the same situation a few years from now after the bankruptcy.
Deal Addict
User avatar
Dec 13, 2016
3576 posts
3061 upvotes
Declare bankruptcy.

There is nothing deceitful and wrong about it. Companies do it all the time.

As a matter of fact it seems to me that people who declare bankruptcy do much better later in life. As a matter of fact throughout the years I have seen quite a few posts from RFD braggarts who admit declaring bankruptcy and looking advice on how to buy a million dollar home with a 50% down.

Seriously, go for it. Don't torture yourself.
Deal Addict
Aug 18, 2018
1786 posts
1364 upvotes
Bay Area
DebtBoy wrote: Should I declare bankruptcy? If i'm not mistaken then I will only have to repay my OSAP loan and pay the bankruptcy amount. The other debts in my mother's name I would continue to pay off.
I prefer not to go bankrupt because I have $25,000 coming to me in about 6 months and don't want to **** up my credit for the next 6 years...
Since you have a problem with living on credit, I don't see cutting off access to credit completely for the next 6 years as a bad thing at all.
Member
Jan 10, 2018
344 posts
197 upvotes
WoW living beyond your means is an understatement!
Your dogs are probably eating better than you!
Unless you've been out of school 5 years SL can't be written off, but just based on this almost $40K of High Interest personal debt with only $40k/yr income

Capital 1 CC = $9000 (21%).
Unsecured PLOC = $5000 (12%).
Fairstone Loan = $9250 (37%).
Easyfinancial Loan = $8850 (46%)
Moneymart Loan = $2600 (47%)
Cashmoney Loan = $2500 (47%)

YES CLAIM BANKRUPTCY!!!

The longer you live in denial and put off bankruptcy you're just making the pain last longer.
You also need a serious reality check to put it bluntly and start living within your means.
Binge watch
and take the advice to change your life while you're in bankruptcy!
Last edited by Tommycoupons on Jun 14th, 2019 9:46 pm, edited 1 time in total.
Member
Jan 10, 2018
344 posts
197 upvotes
arkane wrote: Since you have a problem with living on credit, I don't see cutting off access to credit completely for the next 6 years as a bad thing at all.
That $25K will go to his creditors one way or another...

His mom is going to get sunk with $30K of debt.... My only other advice is to suffer until you get the $25K and give it to your mom and then claim bankruptcy.... I'm not sure where this $25K is coming from, but bankruptcy is your only option
Last edited by Tommycoupons on Jun 14th, 2019 9:50 pm, edited 1 time in total.
Deal Addict
User avatar
Dec 13, 2016
3576 posts
3061 upvotes
Tommycoupons wrote:
Binge watch
and take the advice to change your life while you're in bankruptcy!
Look, I stopped at 1:40 and you tell me if the real issue here gets addressed.

Once they had their first kid the wife stopped working. Second kid postpartum depression - goes out spends money.

How about you get a job, you lazy cow? That is the reason for their financial troubles. Does this get addressed at all?
Member
Jan 10, 2018
344 posts
197 upvotes
BiegeToyota wrote: Look, I stopped at 1:40 and you tell me if the real issue here gets addressed.

Once they had their first kid the wife stopped working. Second kid postpartum depression - goes out spends money.

How about you get a job, you lazy cow? That is the reason for their financial troubles. Does this get addressed at all?
If you watched the next 30 sec you'd see her tell him to get another job lol
Deal Addict
Aug 1, 2006
1504 posts
1094 upvotes
Toronto
Tommycoupons wrote: If you watched the next 30 sec you'd see her tell him to get another job lol
And 30 seconds after that she complains he told her to go back to work LOL. Also strange that he totals his car and is off work at the post office for 6 months, but then goes back to work driving a truck for the post office. Who looked after his kebob business the last 6 months? I guess being on disability from post office doesn't mean you can't work at your own business LOL.
Member
Jan 10, 2018
344 posts
197 upvotes
Ok I'm going to rip apart this OP's expenses and show him some reality!

Your Vehicle is costing you $1090 a MONTH!!!!! That's insane! ditch the car for a BUS PASS!
Car Payments: $450
Insurance: $390
Gas: $250

Dogs Well over $200!!! Solution SPCA!!!!!!

Dog Food: $180 (2 Dogs)
Personal: $150 - $300 (Grooming, Netflix, cleaning supplies, etc).

Get a roommate!!! or move in with mom! either way you'll be living with Somebody and they won't be barking!
Rent: $1355 (Lease ends in Dec 2019)

Really? 20GB of Data??? Get use to 2GB you already have internet!
Cell: $100 (Includes 20 GB)
Internet: $55

You got like $1500 a month in payments that will probably last 10 years! Bankruptcy is 9 months!

Fairstone Loan: $368
Easyfinancial loan: $360
Cash money loan: $100
Moneymart loan: $120
Simplii loan: $100
MBNA loan: $400
Cap 1 CC: $250
Osap: $85
Member
Jan 10, 2018
344 posts
197 upvotes
Also why are you paying $390 a MONTH in Car insurance??? did you get like 100 speeding tickets and in 20 accidents? or did you finance it at 600%?
Deal Addict
User avatar
Dec 13, 2016
3576 posts
3061 upvotes
Tommycoupons wrote: Also why are you paying $390 a MONTH in Car insurance??? did you get like 100 speeding tickets and in 20 accidents? or did you finance it at 600%?
Honestly, I think this is a going rate if the guy lives in Ontario.

As a matter of fact, the car would have been the first thing I would get rid of in Ontario. The total with financing, insurance and gas would have been a mortgage payment on a 1 bedroom condo a few years back. His dogs are peanuts in comparison to maintain and at least give him company,
Newbie
Aug 6, 2011
86 posts
28 upvotes
St Catharines
Not to get too off topic, I'm under 25 in Ontario, and I pay $130ish / month for my insurance. Sounds like the OP has some tickets, or accidents on the insurance.

Back to topic. At this point you'll need to file. It's honestly not the worse thing in the world. I've know many folks that have been in your shoes. Sure it stays on there for a while, but it doesn't affect your overall life. It may effect your lifestyle, but it'll teach you how to live within your means. Live, and learn.
Deal Guru
User avatar
May 8, 2009
13684 posts
11182 upvotes
Leask
@DebtBoy we gave you all the advice on your January thread. Since then, it doesn't look like you've done any improvement...in fact you've only increased your debt.
  1. ok your mom should not lend you any more money. She'll probably never get a dime from you. That said, she should at least seek out a balance transfer promo on her credit cards to save on interest. You already fudged her financially (no offense), best thing she can do is to go to her bank (or multiple banks) and ask for a loan and/or credit cards with intro BT offers. Once you have your mom that advice, have her promise to never lend you any money
  2. We already established that you should ditch your car. Ride a bike, take the bus, etc. You're not doing yourself any favours by maintaining it. Heck, if you claim bankruptcy, the repo man will take your car anyway (unless it's worth <$5k). Your story suggests the repo man will take your car
  3. if you claim bankruptcy, expect no access to credit for a good while. No mortgage, etc. Many of us are earning $2k+/yr on minimal effort in credit card rewards, you'll be locked out of that game for a good while
  4. What happened to working 2+ jobs? Please hit the workforce hard
  5. If you still want your mom's help, then give her your dogs

Bottom line, you'll probably still default, and you'll certainly survive...but life will get less comfortable.

Since you've shown no improvement since January, why are you back seeking our advice?
No solicitation in sigs

Top