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What happens if you ignore your creditors?
A reader asks: What are the consequences if a person is declared bankrupt and ignores their debtors? Victor Fong, Licensed Insolvency Trustee responds: The question is using incorrect terminology: a debtor is the person who owes the money. The person who is owed money is called a creditor. Therefore, the question should be rephrased as: “What are the consequences if a person is declared bankrupt and ignores their creditors?” First off, a person is not “declared bankrupt” just because he can’t pay his creditors. He is insolvent. To be insolvent means that he cannot pay his debts as they become due. To answer your question regarding the consequences of ignoring…
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Lost Everything In The Stock Market And In Debt
Hello all, my hands are shaking this while I am typing this. I am in a bit of a situation, I have almost $75,000 of debt including LOC and credit cards. I have invested $55,000 in stock market which is sitting at $3500 from last 3 years. This was such a big mistake. I took out money from LOC to invest in stocks and it’s all gone now. My net income is only $3200 monthly and my monthly expenses is more than that. I am paying minimum payments on all the LOC and credit cards every month. I am the breadwinner of the family and we have an 18 month…
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Can you become a CPA after filing a consumer proposal?
I’m 25 currently and make 65k, but have around 48k in CC debt that resulted mostly from gambling. I’ve already self excluded from all apps, and plan on getting help through CAMH and gamtalk. I know I was stupid and i’m trying to get my life back in order. I am strongly considering a consumer proposal. I’ve never filed bankruptcy before, and currently have no assets. The credit card debt is as follows. RBC – 24.2K MBNA – 12K CIBC – 11.8K I just have a few questions regarding this. I’ve heard RBC is notorious for denying consumer proposals, should I pay them down a bit, so they are under…
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What to expect when meeting with a Licensed Insolvency Trustee
Please listen to me first. Due to my poor financial decisions and gambling addiction I have accumulated following debts: Credit card = 15000$ Line of credit= 15000$ Money mart=12500$ Cash money =6000$ Other credit card= 4200$+ 5000$ I can’t seem to get out of this. It’s never ending cycle. I am thinking to apply for consumer proposal. Can someone help me what paper work they will ask ? Like tax filing or income verification. I don’t own a house or have a vehicle loan. Thank you and appreciate. Victor Fong, Licensed Insolvency Trustee replies: Here’s what you’ll typically be asked during a consultation meeting. Please note that this list…
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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…
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Can you keep a credit card when filing a consumer proposal?
I have a personal AMEX and a Visa I use for paying services I need for my consulting business (how I’m able to make money at the moment). What’s the likely hood I’ll be able to keep cards assuming I have no balance at the time of the proposal? My debts come from personal guarantees I had made for a Corp that got loans, that business failed and I’m on the hook for whatever the lenders decide to do (I’m ready for the worst tbh). My trustee handling the business bankruptcy has been helpful, but I’m asking PFC to see if anyone from my side who’s dealt with this before…
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Debt consolidation versus consumer proposal
Just Looking to Consolidate about $46,000 dollars of debt and pay one lender, Some Stats about me -Bad Credit(600,Unfortunately had very bad spending habits in my mid 20’s) -On-Going Income, totally fine with paying monthly -Not willing to do a consumer proposal,Just willing to get a loan to consolidate debt -Aware of the borrowing rates currently, Not worried about the prime rate -Located In Ontario but will take tips and advice from all provinces Honestly I’m just looking to consolidate it all and focus on paying one lender, I know my credit score is a hassle, but if anyone knows where to find lenders that does this stuff and accommodate…
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Can a lawyer file a consumer proposal or bankruptcy on law school debt?
I currently make an income of $80,000 a year before tax. I’m 27 year old female with no assets. I’m not sure if I should consider bankruptcy, consumer proposal or what to do. My debt: 150k line of credit at prime + 1% 50k government student loans at approx prime + 1% No credit card debt (I have 3 credit cards with ~$15k total limits but pay them off monthly) What I’m freaked out about- all my money goes towards paying off debt and living expenses; I feel like I’m drowning and can’t save. My debt feels never ending because of current interest rates and I’m also very aware that…
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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…
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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…
