case studies
Posts related to case studies of debtors who filed personal bankruptcy or consumer proposal proceedings with a Licensed Insolvency Trustee.
-
Can you file a consumer proposal with a positive net worth?
I’m struggling to pay debt and honestly I’m super confused with all the different debt options available since I never faced this situation before. Which way to reduce my debt while NOT hurting my credit score? (Ideally) Debt consolidation, Debt settlement, Credit counseling, Consumer Proposal, or Bankruptcy? (last resort i guess) I still have a decent credit score (715) and still making mortgage/car/minimum cc payments, but i have the following debt which i cannot pay anymore: CRA personal: 47k CRA business: 38k Property Taxes: 15k Credit Card balances: 20k (30%ish usage of available credit) I also own a home valued at 450k and have 175k balance on the mortgage… What…
-
Credit Card Maxed Out On Gambling
SPOILER ALERT! I am a moron !!! A month ago I decided to move back to my home country from Canada permanently and I came up with a brilliant!!!(sarcasm) plan which was using my credit card to gamble and after potentially making it double or triple pay the initial amount and take home a nice amount of money and make fresh start. However things went south so fast and after 1 weeks hours of gambling I found my self lost all money in my chequing account ( 7-8 k) plus a 37 k on credit cards debt. I was gambling 14-15 hours a day 2-3 times I hit 35k but…
-
A conversation with someone who inherited $20,000 after filing a consumer proposal
Hi. I’m in the last stages of finalizing my consumer proposal. I have a video call with my assigned trustee in a few days, which I’m very nervous for. To make it more complex, I just ended up with a surprise inheritance for 20,000 dollars. I have not finalized my consumer proposal yet, and my creditors still have to agree on it etc., etc.. I’m really scared this sudden change in my financial situation will mess with my proposal being finalized. I would much rather my credit tank for a few years and have an easier time mentally and financially, than be back barely making ends meet… Does anyone have…
-
Can you become a CPA after filing a consumer proposal?
I’m 25 currently and make 65k, but have around 48k in CC debt that resulted mostly from gambling. I’ve already self excluded from all apps, and plan on getting help through CAMH and gamtalk. I know I was stupid and i’m trying to get my life back in order. I am strongly considering a consumer proposal. I’ve never filed bankruptcy before, and currently have no assets. The credit card debt is as follows. RBC – 24.2K MBNA – 12K CIBC – 11.8K I just have a few questions regarding this. I’ve heard RBC is notorious for denying consumer proposals, should I pay them down a bit, so they are under…
-
Can you file a bankruptcy if you can afford a consumer proposal?
Hi all, here for various reasons. Young and dumb, was offered credit cards and a line of credit and took them on. Made a lot of irresponsible decisions. I make $60k/year, live in Winnipeg. Live with my partner but we aren’t considered common-law yet. I’m 27f. Debts: 13k Cashback Mastercard 5k Avion Visa 27k Line of Credit All with RBC I was able to stay on top of my monthly payments for a while, managed to reduce my debt to 25k for a while and carried that. Then life just happened. The past 2 years or so has been rough. My partner was unemployed for a about six months, we…
-
My mother is 53 years old and $50,000 in credit card debt
Hello there. I’ll explain myself a bit Basically my mother has nearly 50K in credit card debt with her multiple cards. This was acquired just by living expenses since my mom didn’t work much through covid (health problems) My mom is 53 and has pretty much been financially downtrodden constantly, she first went bankrupt on student loans whenever just before the cutoff where you could not go bankrupt for student loans anymore, 15 something years ago I’m not sure. The majority of her paycheque goes towards the minimums for all her cards and will take her 2 decades to pay off. Recently she has talked about claiming bankruptcy but is…
-
What happens if you file for bankruptcy but don’t complete it?
If you file for bankruptcy but don’t complete it, the Licensed Insolvency Trustee will be required to oppose your discharge from bankruptcy and will schedule a discharge hearing with the Bankruptcy Court. You will be given notice of the discharge hearing date so you have the opportunity to attend the hearing and explain to the Court why you didn’t fulfill your obligations. The Court will issue one of the following Orders: You obtain an Absolute Discharge if the Court finds that you did nothing wrong. Your discharge is conditional upon you completing your obligations in your bankruptcy proceedings. If your conduct is especially egregious, your discharge shall be refused. If…
-
Can I max out credit cards before bankruptcy?
Here’s what would happen if you did this. Your Licensed Insolvency Trustee would be contacted by the bank which issued you the credit card. The bank would inform your LIT that it’s reviewed your credit card transactions for the 12 month period before you filed bankruptcy and they’ve noticed that you’ve made some questionable transactions such as large purchases, cash advances, vacations, etc. The LIT will arrange for you to be examined under oath by the Office of the Superintendent of Bankruptcy and will ask you questions about these transactions. After the examination, they’ll issue an examination report to both you and your LIT with an opinion as to whether any aspects…
-
Handling my mother’s credit card debt because she’s irresponsible
My mom got a Capital One Credit card in 2014 with a limit of $7300. She eventually ended up maxing out the card and due to some issues with her relationship, she had to move out. They told her they were going to pass her to collections but they never did, so she forgot about it. About 4 years ago, she ended up buying a house (I don’t know how she got a mortgage with this possibly on her credit record), and she had no problems. Then Capital One retained a lawyer to recover the debt + interest, so they lawyer told her, she has to pay back $11,313.73 due…
-
Consulting a lawyer prior to considering a consumer proposal?
Been slowly slipping deeper into debt the last while, I’ve been beyond stressed about it while my spouse thinks it’s fine. I’ve mentioned the consumer proposal ideal before but my spouse shut it down. So we visited a bank for a consolidation loan, 100k @ 12% and we wouldn’t be able to make the payment without incurring more debt. So we met with a Certified Financial Planner, he recommended looking into a consumer proposal. My spouse now wants to see another Certified Financial Planner, and even mentioned seeing a lawyer? As spouse stated ‘a consumer proposal is for someone who is close to bankruptcy, and that isn’t us’ all the…
