Newbie to a CP, some insight to prepare us

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PushingLimit

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Newbie to a CP, some insight to prepare us
« on: July 07, 2018, 09:44:44 PM »
Okay - so my wife and I are about to reach out to a counselor and start to discuss a CP. We owe around $100k in debt, it is a result of bad choices trying to be good choices. Most of our loans/Visa's are with CIBC, 98% is owed to them. Our issue is that we continue to wrap consolidation loan into consolidation loan, year after year. I think we are still paying off our original $20k loan now 10 years later :)
We have done the same thing with vehicles, our current vehicle has the costs of past vehicles wrapped up in it.

My questions are:
1) Since CIBC is our bank for everything ,savings, chequing, etc...should we move all these accounts to another bank before entering a CP?
2) We have a USD visa, Home Depot and Canadian Tire credit card, neither with anything on it....do they need to be apart of the CP?
3) Stupid as this sounds, would it make sense to try and get a second hand vehicle or something before the CP, our current vehicle is an extra $200/month just because other vehicles are wrapped into it. My brain fart is that we would include the current car in the CP and just pay on the second hand/cheaper vehicle and then after the CP look at getting a new one (if required)

I just don't want to continue down this path, therefore thinking if I can rid myself of the high loan on the vehicle, which I still need one, would it make sense.

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Lost and Found

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Re: Newbie to a CP, some insight to prepare us
« Reply #1 on: July 08, 2018, 08:21:43 AM »
1.  I sure would.  I don't think they can legally do any monkey business but why take chances and find out your balance has been taken thus necessitating weeks if not months of back and forth with the trustee to set it right.

2.  I didn't, gave them all up even the ones with zero on it but, a friend of mine kept his.  I wish now I had kept the zero balance ones.

3.  Not sure of the mechanics of the situation.  Could you explain that in another way please.

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Wetcoaster

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Re: Newbie to a CP, some insight to prepare us
« Reply #2 on: July 08, 2018, 04:46:10 PM »
1  -  Yes open accounts in another bank or credit union. you owe nothing too and will not be a part of the CP.
        Also change any direct deposits (pay,income tax etc) and any bills that come out automatically.  You can also move RRSP's to your new bank if you have any.
        Any money left in the CIBC they can take when the CP is filed.

2 -  All credit cards need to be turned in regardless of balance.  If you keep them CIBC can void the CP if accepted  I have no ide about the US one but I would  I      I imagine the same rules apply.

3  -  It depends on the value of the vehicle.  A trustee will be able to answer.


I suggest seeing 2-3 trustees and see what each say.  We owed about $130,000    I saw 2 and one said bankruptcy  was the only option.  The other said they might be
able to get a CP for $1500 a month.  Then I went to 4Pillars for a free consolation. They were able to get us a CP at $860 a month for 60 month with a 25% discount for early pay off. Keep in mind 4Pillars does charge for their services but in our case it was well worth it.

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PushingLimit

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Re: Newbie to a CP, some insight to prepare us
« Reply #3 on: July 11, 2018, 12:40:14 PM »
Thanks folks.

 

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