so confused

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greeneyedlady

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so confused
« on: September 25, 2014, 11:07:28 AM »
I am really confused as to ...the 9 month discharge vs my trustee mentioning that I will have to pay 125 a month for 60 months...do I still have to continue to pay after the 9 month period is up?  This will be my first bankruptcy if I continue with the application.

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NotATrust-E

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Re: so confused
« Reply #1 on: September 27, 2014, 08:37:18 AM »
The 60 months is very likely a proposal payment, which is not bankruptcy. You would pay a set fee for 60 months and your debts would go away without bankruptcy.

In the alternative, if you went bankrupt AND you had no surplus income, you would pay for 9 months and be discharged in 9 months. You would have to do everything the trustee asks you to do, i.e. pay the fee, provide income tax information, go to counselling at his office, etc.

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OntarioGal

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Re: so confused
« Reply #2 on: September 30, 2014, 08:31:12 AM »
I had the option of doing a consumer proposal of $150 each month for 60 months, or, filing for bankruptcy and paying $175 each month for 9 months.  I chose to file for bankruptcy and I'm honestly glad that I did.  I filed for bankruptcy in April 2013 and I was discharged from bankruptcy in January 2014.  I was able to keep my car because it was older (it was a year 2002).  Since being discharged in January, I have since bought a newer car.  My trustee laid out all of the choices for me and explained that given my circumstances, as well as my true desire to make a fresh start, filing for bankruptcy would help me to achieve my goals more quickly.  You have to asses your situation not just now but in the future.  What do you want to do over the course of 5 years?  Would that monthly amount for the Consumer Proposal be a burden to you in year 3, or do you think you could handle it?  You also have to consider if you have any inheritances coming up that you know of or life changing situations. Do you have a newish vehicle or a home that you want to keep?  If so, a consumer proposal might be more beneficial.  Bankruptcy was extremely easy for me to handle in part because I had a really great and understanding trustee who was not judgemental, and also because I took the process very seriously.  I made sure to have the $175 ready to pay the trustee on time each month.  I also made sure to attend my 2 financial counselling sessions on the dates requested, and I gave them my tax info on time.  The process was smooth and very encouraging. 

If I was doing a consumer proposal, I'd still have to be paying a monthly fee now and for the next few years unless I was able to pay it off early.  I was able to SAVE more money going through bankruptcy than I would have been able to with a CP.  I took a full week to decide whether or not to file a CP or bankruptcy, and I'm glad that I took that time to weigh out my options.  At first, I was strongly leaning towards doing a CP, but, I thought about the 5 years it would take to get out of it, and then, the CP would remain on my credit report for an additional 3 years after the 5 years was completed which totals 8 years.  With bankruptcy, it would stay on my credit report for 7 years, which is less than 8 years, and I'd have more money in the bank.  I also thought about all of the money I paid in interest over the years to the credit card companies, and although I know that it was my responsibility to pay them back for what I'd borrowed, I felt I'd paid a lot of money to them over the years and was ready to be done with it and have a fresh start towards rebuilding my financial future.  Good luck with your decision!  I had a financial freedom party on the day that I was discharged from bankruptcy with 2 of my close friends who I had confided in about the bankruptcy filing.  It feels so good to be in a better financial position, and bankruptcy helped with that.

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Nevergiveup

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Re: so confused
« Reply #3 on: October 31, 2014, 10:40:29 PM »
Good Job Ontario Girl! All the best.

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OntarioGal

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Re: so confused
« Reply #4 on: November 01, 2014, 02:15:46 PM »
Thank you so much!  I'm really glad that everything worked out the way that it did.  I'm working steadily on rebuilding my financial future and will hopefully never get back in to the debt that I was in. 

 

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