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advise about bankruptcy
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<blockquote data-quote="Mamaof5" data-source="post: 367223"><p>United states is different from Canada (I'm a bankrupt) but I can tell you about it emotionally and mentally. It's not that bad!!! I believe there is something called a Chapter 13 and Chapter 8 in the States. One is like out bankruptcy and one is like our consumer proposal (one you are stuck with worse than no credit, the other you are stuck like someone has no credit rather than bad credit).</p><p></p><p>Maybe sit with a trustee and ask about both options? A consumer proposal is a document fleshed out by a trustee lawyer and states how much you pay a month in trust to the trustee who then distributes that payment among your creditors for you. It can take anywhere from 3 to 5 years with these payments. Never, ever miss a payment or the whole thing defaults and your creditors can ask for full upfront payment (my sister in law did a consumer proposal a few years back).</p><p></p><p>Bankruptcy is a fresh start, from zero (well negative, below zero). 7 years from the date of release from your bankruptcy is when you can really start to build your credit again. It doesn't take long either and sometimes you can start building credit again way before the 7 year mark (hubby did after 2 years because you can't go bankrupt for another 7 years and creditors know that, so they offer it - high risk creditors though).</p><p></p><p>Emotionally - it's a relief. No more phone calls for late payments or non-payment. When you do get the odd one you redirect it to your trustee. No more rudeness from customer service reps calling for money. However the pit fall is you can't own a certain amount of assets, you'll be made to sell off say a brand new 2010 vehicle or return it to the dealership. Own a house, it's okay. You can work that out with the bank through the trustee. In proposals, mortgage and vehicle are not included (you can exclude certain things from a proposal as compared to a bankruptcy). </p><p></p><p>I'm not a trustee, and the laws change every year so talking to a trustee is always your best bet, most trustees will give a free consultation. They do their fees on a sliding scale rate according to income of the both of you (at least here in Canada they do).</p></blockquote><p></p>
[QUOTE="Mamaof5, post: 367223"] United states is different from Canada (I'm a bankrupt) but I can tell you about it emotionally and mentally. It's not that bad!!! I believe there is something called a Chapter 13 and Chapter 8 in the States. One is like out bankruptcy and one is like our consumer proposal (one you are stuck with worse than no credit, the other you are stuck like someone has no credit rather than bad credit). Maybe sit with a trustee and ask about both options? A consumer proposal is a document fleshed out by a trustee lawyer and states how much you pay a month in trust to the trustee who then distributes that payment among your creditors for you. It can take anywhere from 3 to 5 years with these payments. Never, ever miss a payment or the whole thing defaults and your creditors can ask for full upfront payment (my sister in law did a consumer proposal a few years back). Bankruptcy is a fresh start, from zero (well negative, below zero). 7 years from the date of release from your bankruptcy is when you can really start to build your credit again. It doesn't take long either and sometimes you can start building credit again way before the 7 year mark (hubby did after 2 years because you can't go bankrupt for another 7 years and creditors know that, so they offer it - high risk creditors though). Emotionally - it's a relief. No more phone calls for late payments or non-payment. When you do get the odd one you redirect it to your trustee. No more rudeness from customer service reps calling for money. However the pit fall is you can't own a certain amount of assets, you'll be made to sell off say a brand new 2010 vehicle or return it to the dealership. Own a house, it's okay. You can work that out with the bank through the trustee. In proposals, mortgage and vehicle are not included (you can exclude certain things from a proposal as compared to a bankruptcy). I'm not a trustee, and the laws change every year so talking to a trustee is always your best bet, most trustees will give a free consultation. They do their fees on a sliding scale rate according to income of the both of you (at least here in Canada they do). [/QUOTE]
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