Bankruptcy Questions??
03-Oct-2005, 02:07 AM
#1
Registered User
Thread Starter
Join Date: Apr 2002
Location: Moon
Posts: 8,921
Bankruptcy Questions??
Hey guys just got some questions regarding declaring bankruptcy.
basically one of my goodfriends can no longer afford to pay off his bills and be able to support himself. He no longer has a job and he is in debt for about 60 grand and thats off credit cards alone. He wants to basically know how to approach this matter as he has been avoiding payments for the past 3 months and he is being called by the collectors of each bank.
the questions he has are:
who to consult?
what types of bankruptcy's are there
does he have to go to court?
is there people that do it for a fee (lawyer type people) and basically deal with the entire situation?
he was also told sometimes they take small amounts off paycheques once he starts up a job he wants to know when that case might be and is it all the time?
lmk guys thanks.
basically one of my goodfriends can no longer afford to pay off his bills and be able to support himself. He no longer has a job and he is in debt for about 60 grand and thats off credit cards alone. He wants to basically know how to approach this matter as he has been avoiding payments for the past 3 months and he is being called by the collectors of each bank.
the questions he has are:
who to consult?
what types of bankruptcy's are there
does he have to go to court?
is there people that do it for a fee (lawyer type people) and basically deal with the entire situation?
he was also told sometimes they take small amounts off paycheques once he starts up a job he wants to know when that case might be and is it all the time?
lmk guys thanks.
03-Oct-2005, 02:12 AM
#2
Registered User
Join Date: Aug 2005
Location: Windsor
Posts: 2,641
lol well since I am bankrupt I can answer all these questions for you...
1. I used A. Farber and Partners
2. Personal Bankruptcy
3. No he doesn't have to go to court as long as he follows the rules
4. A Farber charges $175 a month if you make less then a certain amount and if hes making nothing then it would be $175 forsure
if u wanna know more email me cmilwain@cogeco.ca or MSN spicechic17@hotmail.com
I dont wanna post too much personal **** that might help on here...
Connie
1. I used A. Farber and Partners
2. Personal Bankruptcy
3. No he doesn't have to go to court as long as he follows the rules
4. A Farber charges $175 a month if you make less then a certain amount and if hes making nothing then it would be $175 forsure
if u wanna know more email me cmilwain@cogeco.ca or MSN spicechic17@hotmail.com
I dont wanna post too much personal **** that might help on here...
Connie
03-Oct-2005, 02:28 AM
#4
Senior Member
Join Date: Dec 2003
Posts: 23,881
**** bancruptcy...file for a consumer propsal....it will cost u less and hurt your credit less
contact par-o-law canada
416.306.2814
derek will help him out
with a consumer proposal, the creditors settle on a lesser amount and u make payments till its paid...u will never have to pay more than the settled amount (unlike bancruptcy) unless ur friend is way way way deep in the hole this is the best option, but like I said derek will better explain everything and go over both options
contact par-o-law canada
416.306.2814
derek will help him out
with a consumer proposal, the creditors settle on a lesser amount and u make payments till its paid...u will never have to pay more than the settled amount (unlike bancruptcy) unless ur friend is way way way deep in the hole this is the best option, but like I said derek will better explain everything and go over both options
03-Oct-2005, 02:31 AM
#5
Registered User
Join Date: Aug 2005
Location: Windsor
Posts: 2,641
the thing that sucks about consumer proposals, if you default on 3 payments you have to go to court, and they make you pay what you owe plus 5%. And if it takes you 10 years to pay it off then its on your credit for an additonal 7 years. With bankruptcy your done in 9 months... and its off after 7 years from date of file.
And in bankruptcy you dont settle on an ammount.. you just pay what you can afford.. and the whole debt is completely gone... I pay the least 175 a month and that money is just for her service. the creditors get NOTHING!!!
And in bankruptcy you dont settle on an ammount.. you just pay what you can afford.. and the whole debt is completely gone... I pay the least 175 a month and that money is just for her service. the creditors get NOTHING!!!
03-Oct-2005, 10:14 AM
#8
I work for a Trustee in Bankruptcy (Wasserman Associates Inc.).
So to answer your questions:
1. You consult a trustee in bankruptcy.
2. And in his scenerio he has two options:
A. Personal bankruptcy, this is the choice to make if most of your debt is unsecured and you don't have alot of equity in assets.
B. There is also the option of Consumer Proposal, this is mainly a good option when you have considerable equity in a home, it allows you to make the propsal to unsecureds only and keep your equity in your house or significant investment savings. Bigget disadvantage I see with Consumer Proposal is the default rate is over 75%. You are in default if your payments become 3 months past due. If you default your proposal is annulled and you owe your creditors still 100% of your debt.
3. You only have to go to court (in a first time bankruptcy, second time is different) if someone objects to you discharge (I rarely see this if the majority of debt is credit cards). Most common objections are done by the Trustee if your fees are not paid, and you have not met your obligations to the Trustee (ie. two counselling sessions and tax information not provided)
4. The Trustee in bankruptcy has a fee of $175 per month (set by law) unless there is surplus income. (Surplus income occurs when a single person makes over $1,600 and it goes up if there are dependants involved.) Surplus Income = 50% of what you make above allowable limit. The Trustee has all dealings with your creditors from the date of bankruptcy.
5. The trustee never garnishes wages, actually all garnishments stop at the date of bankruptcy. The only thing that may happen is you may fall into the surplus income category, where your payments to the Trustee increase for the remainder.
First time bankruptcy is an automatic discharge in 9 months as long as there are no objections. Remember Trustees fees are governed by law, and anything above and beyond the allowable limit will go to the creditors.
Consultation is free in our office, I recommend your buddy talk to a Trustee where they can assess his situation and give him the options.
So to answer your questions:
1. You consult a trustee in bankruptcy.
2. And in his scenerio he has two options:
A. Personal bankruptcy, this is the choice to make if most of your debt is unsecured and you don't have alot of equity in assets.
B. There is also the option of Consumer Proposal, this is mainly a good option when you have considerable equity in a home, it allows you to make the propsal to unsecureds only and keep your equity in your house or significant investment savings. Bigget disadvantage I see with Consumer Proposal is the default rate is over 75%. You are in default if your payments become 3 months past due. If you default your proposal is annulled and you owe your creditors still 100% of your debt.
3. You only have to go to court (in a first time bankruptcy, second time is different) if someone objects to you discharge (I rarely see this if the majority of debt is credit cards). Most common objections are done by the Trustee if your fees are not paid, and you have not met your obligations to the Trustee (ie. two counselling sessions and tax information not provided)
4. The Trustee in bankruptcy has a fee of $175 per month (set by law) unless there is surplus income. (Surplus income occurs when a single person makes over $1,600 and it goes up if there are dependants involved.) Surplus Income = 50% of what you make above allowable limit. The Trustee has all dealings with your creditors from the date of bankruptcy.
5. The trustee never garnishes wages, actually all garnishments stop at the date of bankruptcy. The only thing that may happen is you may fall into the surplus income category, where your payments to the Trustee increase for the remainder.
First time bankruptcy is an automatic discharge in 9 months as long as there are no objections. Remember Trustees fees are governed by law, and anything above and beyond the allowable limit will go to the creditors.
Consultation is free in our office, I recommend your buddy talk to a Trustee where they can assess his situation and give him the options.
03-Oct-2005, 10:29 AM
#9
Registered User
Join Date: Aug 2005
Location: Windsor
Posts: 2,641
Originally posted by electronblue
I work for a Trustee in Bankruptcy (Wasserman Associates Inc.).
So to answer your questions:
1. You consult a trustee in bankruptcy.
2. And in his scenerio he has two options:
A. Personal bankruptcy, this is the choice to make if most of your debt is unsecured and you don't have alot of equity in assets.
B. There is also the option of Consumer Proposal, this is mainly a good option when you have considerable equity in a home, it allows you to make the propsal to unsecureds only and keep your equity in your house or significant investment savings. Bigget disadvantage I see with Consumer Proposal is the default rate is over 75%. You are in default if your payments become 3 months past due. If you default your proposal is annulled and you owe your creditors still 100% of your debt.
3. You only have to go to court (in a first time bankruptcy, second time is different) if someone objects to you discharge (I rarely see this if the majority of debt is credit cards). Most common objections are done by the Trustee if your fees are not paid, and you have not met your obligations to the Trustee (ie. two counselling sessions and tax information not provided)
4. The Trustee in bankruptcy has a fee of $175 per month (set by law) unless there is surplus income. (Surplus income occurs when a single person makes over $1,600 and it goes up if there are dependants involved.) Surplus Income = 50% of what you make above allowable limit. The Trustee has all dealings with your creditors from the date of bankruptcy.
5. The trustee never garnishes wages, actually all garnishments stop at the date of bankruptcy. The only thing that may happen is you may fall into the surplus income category, where your payments to the Trustee increase for the remainder.
First time bankruptcy is an automatic discharge in 9 months as long as there are no objections. Remember Trustees fees are governed by law, and anything above and beyond the allowable limit will go to the creditors.
Consultation is free in our office, I recommend your buddy talk to a Trustee where they can assess his situation and give him the options.
I work for a Trustee in Bankruptcy (Wasserman Associates Inc.).
So to answer your questions:
1. You consult a trustee in bankruptcy.
2. And in his scenerio he has two options:
A. Personal bankruptcy, this is the choice to make if most of your debt is unsecured and you don't have alot of equity in assets.
B. There is also the option of Consumer Proposal, this is mainly a good option when you have considerable equity in a home, it allows you to make the propsal to unsecureds only and keep your equity in your house or significant investment savings. Bigget disadvantage I see with Consumer Proposal is the default rate is over 75%. You are in default if your payments become 3 months past due. If you default your proposal is annulled and you owe your creditors still 100% of your debt.
3. You only have to go to court (in a first time bankruptcy, second time is different) if someone objects to you discharge (I rarely see this if the majority of debt is credit cards). Most common objections are done by the Trustee if your fees are not paid, and you have not met your obligations to the Trustee (ie. two counselling sessions and tax information not provided)
4. The Trustee in bankruptcy has a fee of $175 per month (set by law) unless there is surplus income. (Surplus income occurs when a single person makes over $1,600 and it goes up if there are dependants involved.) Surplus Income = 50% of what you make above allowable limit. The Trustee has all dealings with your creditors from the date of bankruptcy.
5. The trustee never garnishes wages, actually all garnishments stop at the date of bankruptcy. The only thing that may happen is you may fall into the surplus income category, where your payments to the Trustee increase for the remainder.
First time bankruptcy is an automatic discharge in 9 months as long as there are no objections. Remember Trustees fees are governed by law, and anything above and beyond the allowable limit will go to the creditors.
Consultation is free in our office, I recommend your buddy talk to a Trustee where they can assess his situation and give him the options.
I Love michelle she is so professional!
lol
03-Oct-2005, 12:25 PM
#14
I really feel the love in this room 
haha...and Cynical...you have to be careful, I'm hitting cougar cub status soon...might be on the prowl
Dear, you know I still get 75% of the take on that offering. LOL
haha...and Cynical...you have to be careful, I'm hitting cougar cub status soon...might be on the prowl
Dear, you know I still get 75% of the take on that offering. LOL
03-Oct-2005, 12:39 PM
#16
Registered User
Join Date: Nov 2004
Location: Toronto
Posts: 583
after going though the bankruptcy steps....be sure to take some money management/ financial planning education to avoid doing it all again.
how an early 20-something person racks up so much debt, i will never know.
how an early 20-something person racks up so much debt, i will never know.
03-Oct-2005, 12:41 PM
#17
Registered User
Join Date: Jan 2005
Posts: 1,030
Originally posted by Cantonagod
She is available to the highest bidder.
She is available to the highest bidder.
Jeff, I'll give you.......hmmmm.........I can't think of anythign right now.....LOL.....sorry Michelle.....look at it as you're priceless......in a good way!
hahahaha
03-Oct-2005, 01:05 PM
#19
Senior Member
Join Date: Dec 2003
Posts: 23,881
Originally posted by t_dot_porkchop
after going though the bankruptcy steps....be sure to take some money management/ financial planning education to avoid doing it all again.
how an early 20-something person racks up so much debt, i will never know.
after going though the bankruptcy steps....be sure to take some money management/ financial planning education to avoid doing it all again.
how an early 20-something person racks up so much debt, i will never know.
03-Oct-2005, 01:09 PM
#20
Originally posted by 1999blksi
How long is it b4 your record is clear and you can apply for a creditcard or loan or something?
How long is it b4 your record is clear and you can apply for a creditcard or loan or something?
