Filing Today - Aug 29

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nodebt

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Filing Today - Aug 29
« on: August 29, 2013, 09:16:46 AM »
Hello All,

Filing a consumer proposal today for about $68,000.  They are proposing $500 per month for 5 years.

I will give an update when I start hearing back.


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Dumdum

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Re: Filing Today - Aug 29
« Reply #1 on: August 29, 2013, 01:34:37 PM »
Too bad it has to be done but it is a fresh start so good for you! :)

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nodebt

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Re: Filing Today - Aug 29
« Reply #2 on: August 30, 2013, 10:52:31 AM »
Thanks for the good words DumDum.

So, I guess my CP is actually for about $63,000 as property tax debt is not included...

My Creditors are:

Scotiabank - 43,000
Mastercard - 5,000
Home Depot - 4,000
Credit Union - 4,000
Canada Revenue - 7,000

I'm posting so others can read and see how much others have screwed up too... haahaa... 

I have been reading on this site for a couple months now as I figure out my options.  It has helped me to cope and for that I am very grateful. 

Now, just waiting the 45 days...  I'll keep the forum posted on the process as I work through it...





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NotATrust-E

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Re: Filing Today - Aug 29
« Reply #3 on: August 30, 2013, 09:31:35 PM »
Not a bad offer - your creditors net about 34 cents on the dollar. I'm hoping you've been able to make arrangements with the city with respect to your property tax?

Thanks for the good words DumDum.

So, I guess my CP is actually for about $63,000 as property tax debt is not included...

My Creditors are:

Scotiabank - 43,000
Mastercard - 5,000
Home Depot - 4,000
Credit Union - 4,000
Canada Revenue - 7,000

I'm posting so others can read and see how much others have screwed up too... haahaa... 

I have been reading on this site for a couple months now as I figure out my options.  It has helped me to cope and for that I am very grateful. 

Now, just waiting the 45 days...  I'll keep the forum posted on the process as I work through it...






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JEC

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Re: Filing Today - Aug 29
« Reply #4 on: August 31, 2013, 04:10:08 PM »
Congratulations Nodebt for taking control of your finances. The 45-day waiting period can be stressful..but worth it at the end.  You'll feel much better once the Consumer Proposal is underway.

As NotATrust-E suggested, I hope you make arrangements for your property taxes. It's important to keep them current.
Once you know what your definite Proposal payments are, it would be good to budget some of your leftover finances and try to bring your taxes up to date. The city can take away your property if they want...now that would really add more stress into you life and you don't want that!!

Hang in there, life will become more relaxed once you're underway onto the path of No Debt....it's a wonderful feeling!!

JEC

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nodebt

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Re: Filing Today - Aug 29
« Reply #5 on: September 04, 2013, 11:03:08 AM »
Thanks for the advice guys.  I am about 1 year behind in my property taxes but have been paying them regularly for the past few months and hope to increase the amount I pay, once I know for sure how much I'll be paying in the CP.

If all goes well, I hope to double up on these payments and have the property taxes paid up to date within one year.


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JEC

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Re: Filing Today - Aug 29
« Reply #6 on: September 04, 2013, 09:26:07 PM »
Thanks for the advice guys.  I am about 1 year behind in my property taxes but have been paying them regularly for the past few months and hope to increase the amount I pay, once I know for sure how much I'll be paying in the CP.

If all goes well, I hope to double up on these payments and have the property taxes paid up to date within one year.



That's good planning!!  Everyone will be happy with that plan!!   :)

JEC

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nodebt

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Re: Filing Today - Aug 29
« Reply #7 on: September 17, 2013, 10:02:19 AM »
Well, it has been over 2 weeks now and no response...

One thing I am concerned about though...  CRA put a hold on my bank account before I filed CP and it still has not been removed.  As far as I understood the hold should be removed upon filing CP... 

I asked the trustee about it, they said to give it a few more days.


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blondie

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Re: Filing Today - Aug 29
« Reply #8 on: September 17, 2013, 04:39:22 PM »
I hope you hear soon, good luck!

I am about to file, hopefully this week. My unsecured debts are about $50,000 so I am curious how they came up with your payment plan? THey told me about $500-$600 for 5 years on my initial appointment but I am looking at my budget, income etc and at $500 there is not a lot of room for anything else, no savings and no emergency funds etc.

Does anyone know how they come up with the payment?

Also since you filed did they tell you to continue to pay any of your debts or to hold off? I currently have some payment arrangements with some of my creditors and not sure when I file will they recommend contining to pay them or wait until the proposal is approved?

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Stewart

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Re: Filing Today - Aug 29
« Reply #9 on: September 17, 2013, 06:19:04 PM »
I hope you hear soon, good luck!

I am about to file, hopefully this week. My unsecured debts are about $50,000 so I am curious how they came up with your payment plan? THey told me about $500-$600 for 5 years on my initial appointment but I am looking at my budget, income etc and at $500 there is not a lot of room for anything else, no savings and no emergency funds etc.

Does anyone know how they come up with the payment?

Also since you filed did they tell you to continue to pay any of your debts or to hold off? I currently have some payment arrangements with some of my creditors and not sure when I file will they recommend contining to pay them or wait until the proposal is approved?

They look at your budget and figure out the maximum you can afford in order to pay off your debts. Savings and emergency funds aren't part of the plan. Keep in mind that with $50k worth of debt, even at a very moderate 10% APR would take you 200 months (very nearly 17 years) at a payment of $515/month and you'd repay a total of $103,000. Instead you're able to repay $30,000 for a total savings of just over $70k. If the interest jumps up to 15% (still very low for credit card debt especially) you're now looking at 20 years with a total repayment of $160,000 with a higher monthly payment of $660. In other words, you're likely to never get out of debt at that level of repayment.

It is good that you're thinking about savings and emergency funds, so now is a great time to learn to live on 90% of your means and save the rest. If your current budget doesn't allow for savings, now's the time to trim down your expenses and/or increase your income until it does. Then make sure you save the rest rather than finding new ways to spend it (which is the overriding temptation with most people in North America nowadays).

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blondie

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Re: Filing Today - Aug 29
« Reply #10 on: September 17, 2013, 06:46:18 PM »
thanks, I have no doubt in my mind this is the way I have to go. I know without doing this I would not be able to dig my way out from under this. Was just curious on how they determine how much you can afford. So I am just gathering they take all your normal expenses minus income and what is left over is what they say I can pay.


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NotATrust-E

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Re: Filing Today - Aug 29
« Reply #11 on: September 17, 2013, 07:51:52 PM »
At the same time, trustees know how different creditors operate; RBC and the CRA are tougher than most others. Creditors holding more than 50% of the debt tend to be somewhat less willing.

While trustees get paid based on the amount you contribute, they also know that some people might not be able to stick to a payment schedule, so while they figure out a maximum amount they you can afford to pay, they may not suggest you pay that amount.

They look at your budget and figure out the maximum you can afford in order to pay off your debts. Savings and emergency funds aren't part of the plan. Keep in mind that with $50k worth of debt, even at a very moderate 10% APR would take you 200 months (very nearly 17 years) at a payment of $515/month and you'd repay a total of $103,000. Instead you're able to repay $30,000 for a total savings of just over $70k. If the interest jumps up to 15% (still very low for credit card debt especially) you're now looking at 20 years with a total repayment of $160,000 with a higher monthly payment of $660. In other words, you're likely to never get out of debt at that level of repayment.

It is good that you're thinking about savings and emergency funds, so now is a great time to learn to live on 90% of your means and save the rest. If your current budget doesn't allow for savings, now's the time to trim down your expenses and/or increase your income until it does. Then make sure you save the rest rather than finding new ways to spend it (which is the overriding temptation with most people in North America nowadays).

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nodebt

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Re: Filing Today - Aug 29
« Reply #12 on: September 18, 2013, 09:54:00 AM »
Hey Blondie, 

What you can afford is only part of the calculation.  The trustee also has to offer more to the creditors than they would receive in a bankruptcy.  So first, they have to calculate how much you would have to pay if you went bankrupt. 

In my case, that meant that the car I own and the equity in my house are considered assets and that caused the amount I would have to offer to increase.  If you have a lot of assets or equity in your house than you would have to pay more than someone who has no assets, even if you earn the same amount of income and owe the same amount of money. 

Hope that helps... And good luck with your filing Blondie.


thanks, I have no doubt in my mind this is the way I have to go. I know without doing this I would not be able to dig my way out from under this. Was just curious on how they determine how much you can afford. So I am just gathering they take all your normal expenses minus income and what is left over is what they say I can pay.


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nodebt

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Re: Filing Today - Aug 29
« Reply #13 on: September 18, 2013, 09:55:44 AM »
Pretty sure I was told to stop paying anybody that was included in the CP. 
That's what I did anyway...

I hope you hear soon, good luck!

I am about to file, hopefully this week. My unsecured debts are about $50,000 so I am curious how they came up with your payment plan? THey told me about $500-$600 for 5 years on my initial appointment but I am looking at my budget, income etc and at $500 there is not a lot of room for anything else, no savings and no emergency funds etc.

Does anyone know how they come up with the payment?

Also since you filed did they tell you to continue to pay any of your debts or to hold off? I currently have some payment arrangements with some of my creditors and not sure when I file will they recommend contining to pay them or wait until the proposal is approved?

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nodebt

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Re: Filing Today - Aug 29
« Reply #14 on: September 19, 2013, 04:55:21 PM »
So, my trustee has heard back from my credit union representing $4000 of my debt and they have voted in favour of the proposal.   ;D

Also, it appears the CRA hold on my bank account will be removed today.   :)


 

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