Nervous about impending CP!!

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molly

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Nervous about impending CP!!
« on: November 15, 2017, 12:40:59 PM »
I have been lurking here for a bit, trying to get a feel for what others have gone through regarding CPs. Most of it has been quite encouraging, but I am still very nervous. In a nutshell: I owe RBC (yes, I know...) 28K (LOC)+2K (overdraft)+4K (VISA) for a total of 34K, plus another 3K to TD VISA. After submitting preliminary forms to three trustees, and having a meeting with 4Pillars, I settled on a trustee who seemed to be most willing to help. I met with him last week and have The Meeting set up for next week. He told me not to worry about not having a job; as long as the payment can be met, that is all they worry about. Our income consists of hubby's pensions and CPP. We own a house but it is deemed a revenue property as we have an employer-supplied home, and have rented our house out since we bought it in 2010, but we have very little equity in it due to a fall in real estate values, and a 35 year amortized, high ratio mortgage, which he said will be good for my situation. My debts are my own, and I have not had the heart or guts to tell my poor hubby about it yet... :'(

So, my LOC interest comes off tomorrow, but he advised me last week to not add money to the account for it if I plan to sign a CP. Also, he said to stop paying the credit cards. This feels very weird, as I have been shifting funds from our joint account to my RBC account just trying to keep up, and have not been in arrears so far. I do understand his logic, though. I just feel guilty, and I feel guilty for letting this get out of hand. It has been consuming my mind for a very long time, and stressing me out, which I imagine is common among many of you! He said a meeting with the creditors would likely take place, which also has me mortified! But I have read many articles online where it is supposedly unusual for a meeting to take place for a CP, so maybe i will be lucky. He plans to submit a proposal for 200/month for 5 years, but expects RBC to counter.

Who has had to go to a meeting?? Who has had good or bad luck with RBC? How long did you have to wait before hearing anything? If you had a joint account with a small creditor, did they take your money once they got wind of the CP? I am in the process of shifting everything to new accounts, but the TD account will still have a possible deposit put in before the account change goes through the system...I live near Calgary, and have chosen Hudson & Co. The trustee is very nice, and thankfully has a sense of humour. Any one here use them as well? And, has anyone kept their debts to themselves? I want to be brave and tell hubby but I thought it would be better to have a plan in place before I say anything.... The main concern I had was the credit rating having a negative effect on future real estate transactions, as we had thought of selling that house eventually and buying a different one.

Anyway, sorry for the lengthy post, but I will sure appreciate any comments!!  :)

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Wetcoaster

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Re: Nervous about impending CP!!
« Reply #1 on: November 15, 2017, 05:48:51 PM »
Taking the 1st step is the hardest but well worth it in the end.

We went with 4Pillars as they offered the best solution in our particular case.

I also used to move money around from 4 different cards and never missed any payments that way.

We were also  told not to make any payments on our debt.  We actually went 2 months  and were able to save up a good chunk of money in that time.

 Once the CP is filed it will freeze the accounts so no more interest will be added on.

If your TD account will have a deposit in it before things are changed over just take the money out of the account before the CP is filed.  That is what we had to do also.

As far as buying a new place your credit rating will be no good but your husbands will not be effected.

I would sit down and talk with your husband ASAP and make him aware of what is going on.

I have heard RBC is hard to deal with from some people and others had no problem.

Good luck and keep us informed.

 


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Jennykk

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Re: Nervous about impending CP!!
« Reply #2 on: November 16, 2017, 12:43:00 AM »
I used 4P and the trustee that handled my case is Hudson, as well. I'm 12 mos into my proposal and so far, everything is good.

I also had a creditor's meeting because cdn tire wanted to remove the early payout clause from my proposal. The creditor was not present in the meeting and I don't think they ever will be. It was just me and the trustee. I understand the guilt part of stopping the payments. But it is all part of the process. Once it's approved, you'll be relieved that you made the decision to deal with your financial struggles.

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LT

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Re: Nervous about impending CP!!
« Reply #3 on: November 16, 2017, 08:18:59 PM »
Here are a few suggestions that my trustee advised me to do:

  1. Stop all payments.  When the creditor calls, just say you are having some cash flow problems and to give you a couple of weeks to sort things out.  After you sign the CP, tell your creditors that you have filed a CP and to direct any questions to the trustee. After that, by law, that are not supposed to call you.

  2. Take all the money you are not paying to the creditors and put it in a new bank account with a bank that is NOT one of your creditors. This will be your war chest.  You will need it to pay the trustee and use it for your first payments.

  3. Take out all the money in joint accounts. That way if the bank is one of your creditors, they can't take anything.

  4. Move all pre-approved withdrawals to a new bank account (e.g. rent, hydro, cable, etc).

  5. Move all deposits to the new bank acccount (e.g. salary, pensions, etc).

Also, don't worry about the 2 "credit counseling" sessions with the trustee.  My sessions consisted of 2 meetings with the trustee to say hello and chat about how things were going. She gave me a pamphlet on how to budget, that's it.

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molly

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Re: Nervous about impending CP!!
« Reply #4 on: November 17, 2017, 02:01:35 PM »
See my replies in red!!
Here are a few suggestions that my trustee advised me to do:

  1. Stop all payments.  When the creditor calls, just say you are having some cash flow problems and to give you a couple of weeks to sort things out.  After you sign the CP, tell your creditors that you have filed a CP and to direct any questions to the trustee. After that, by law, that are not supposed to call you. Luckily, I have not been in arrears yet, but I am now over my overdraft on my LOC interest and will leave it alone!
 My CP meeting is on November 24th, so not far off! My CC payments are not due till early December so will not pay those, although they will have been notified by then, I think....


  2. Take all the money you are not paying to the creditors and put it in a new bank account with a bank that is NOT one of your creditors. This will be your war chest.  You will need it to pay the trustee and use it for your first payments. I am opening a new account with ATB Monday,
 after my birthday, so I can get their free senior account, haha... they have a great promo on right now, BTW.


  3. Take out all the money in joint accounts. That way if the bank is one of your creditors, they can't take anything. Yes, hubby opened an ATB account also, and we will close our TD joint account next Friday after the last pension deposit goes in...

  4. Move all pre-approved withdrawals to a new bank account (e.g. rent, hydro, cable, etc). All done except one which will get done Monday!

  5. Move all deposits to the new bank acccount (e.g. salary, pensions, etc). Yup, everyone has been notified!

Also, don't worry about the 2 "credit counseling" sessions with the trustee.  My sessions consisted of 2 meetings with the trustee to say hello and chat about how things were going. She gave me a pamphlet on how to budget, that's it. Not worried about those! I was worried about the creditor's meeting I may have to attend!  :P

Thanks very much for that! Opening a new account was suggested to me by all three trustees and 4 Pillars, so I made sure it would be done. Hubby and me will make $350.00 each for switching to Alberta Treasury Branches, and hubby gets an extra 50 bucks for referring me!

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LT

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Re: Nervous about impending CP!!
« Reply #5 on: November 17, 2017, 06:10:34 PM »
One more thing. If CRA are one of your creditors, make sure they are in the loop for everything. Even though they are a creditor like everyone else, they have special powers that most creditors do not have.  CRA can freeze all your bank accounts, garnish your wages, etc.

When I filed my CP, CRA was one of my creditors, but did not have a say in the approval of the CP (they were a small percentage of what I owed).  My CP was approved and everything was signed and started. Months later, CRA called and said I still owed them money.  It seems like they did not like the "wording" of the CP and did not accept it. What???? My trustee said that CRA didn't have a leg to stand on, but because they are "special", we had to re-propose my CP to all creditors.  Luckily only the "wording" changed and all creditors accepted the change.  Just make sure that CRA is in the loop.

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molly

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Re: Nervous about impending CP!!
« Reply #6 on: November 18, 2017, 10:09:43 AM »
Thankfully I have no CRA debt! Thanks for pointing it out, though!

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molly

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Re: Nervous about impending CP!!
« Reply #7 on: December 14, 2017, 10:51:44 AM »
Just an update! My meeting went OK, and I signed everything on November 24th. I owe about $38K and he offered them 200/month for 5 years, or $12K. He said he has never known RBC to wait till the very end to respond, but is expecting them to come back...My trustee said to email him around December 30th if I haven't heard from him. I checked my accounts and it looks like everything is stopped; RBC removed my three in debt accounts from my online banking access and TD has not added any interest... I am still nervous, but I guess that is normal! I had asked them not to send me anything in the mail, but email only, but unfortunately a letter got through. Hubby picked it up but didn't make the connection; he thought it was from the Hudson's Bay Company! But our postal mistress is a gossip and the letterhead said "insolvency trustees" in bright red ink! The letter was barely even sealed so of course, I got paranoid... I do plan to come clean with hubby, but wanted to wait until I knew exactly what the final monthly amount will be first. And I didn't want to dump this on him before Christmas either.... hopefully I can line up a little job by then, although my trustee said to keep it small as any new income has to be reported within the first three months of filing. Thanks for listening!!!  :-\
« Last Edit: December 14, 2017, 11:45:38 AM by molly »

 

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