Very difficult situation please advise regarding CP or bankruptcy

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Herbert

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Hello everyone. I'm looking for some friendly advice, not legal advise don't worry.

I have $17,000 debt.  I haven't worked in 2 years and only had a small business doing paint and wallpaper which I had to end due to a lifelong knee problem that got really bad in my older days.  I'm not officially disabled but not in a position to take work other than sitting jobs and because I have no schooling those are out of reach for me.

I had to move to my senior mothers apartment last year and now I'm in a tough position.  I thought about CP but I don't have a job and don't see one coming anytime soon because of my age, weak knee and no schooling. I lived and worked on a farm in my younger days until my fathers death and then I moved to Toronto and ran a small biz for 10 years.

My problem now is, no job in sight so I don't know how to propose anything to my credit cards and I just reached the point where my bank account is about to be closed for having no money in it.  Does anyone know what the best solution is in my case.  I'm concerned that living in my mothers apartment for free will have an impact on me being able to declare bankruptcy. 

For example I called ontario works and they said I wouldn't qualify because I'm supported by my mother and even if I wanted to apply I would have to disclose all her finances and rents, when I told my mother that she said get lost. They assume we are friends but we're merely adults and she's helping me because the only other option was living on the street.  Will I have this same result with my bankruptcy or CP ?  If so what do I have to do live on the street for a year ?  I'm really stuck because I'm broke and any basic assistance to get the ball rolling is out of reach due to the weird rules. I'd love to go to school for a 1 yr basic technical program like soldering/assembly but even that is out of reach because I'm in debt and have almost no income. My only incoming has been putting my old tools and personal assets on craiglist but that's running out as well.

I don't want to declare bankruptcy but if I do, will living with free rent mother have an affect on me ?

Herbert

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fireguy233

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Re: Very difficult situation please advise regarding CP or bankruptcy
« Reply #1 on: November 03, 2017, 02:20:49 AM »
Herbert,

Financial matters can anyone down and being in a tight spot is never easy. Believe me ive been there as I'm sure many on this site have.

With a Consumer Proposal you would need to prove that you have the means to pay whatever is proposed.

A Bankruptcy you don't need to be employed but it will cost about 1-1.5k to file. The administrators are not govt employees and need to be paid for their time/ effort.

At this moment it sounds to me that you are garnishee proof. Collection Agencies cannot take disability payments and the likes so they cannot take any of the funds you
receive from the govt.

As far as living with your mother it has no bearing. Unless it was a joint filing otherwise its based on you and you alone.

Now I am no Professional so please seek assistance from a licensed trustee. For my proposal I used Deloitte/ BDO.

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Herbert

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Re: Very difficult situation please advise regarding CP or bankruptcy
« Reply #2 on: November 03, 2017, 01:12:10 PM »
Thanks for the info.  Don't worry I'm just looking for tips and seeing what others are doing in my case, I am not looking for legal advice to hold someone responsible.  With that said, I have been lumping in social services and bankruptcy in the same pile and as it turns out I can live with a relative while going through bankruptcy. It just embarrassing when a trustee asks how you're supporting yourself.  I most likely won't qualify for CP coming from a self employed background and now having no vehicle makes self employment almost impossible.  Thanks and I'll keep you all updated.

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fireguy233

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Re: Very difficult situation please advise regarding CP or bankruptcy
« Reply #3 on: November 03, 2017, 10:58:21 PM »
Hey Herbert,

I was hesitant to file the CP at first. I was worried about what people would say about me and my employer finding out. Let alone I didn't want to have to take the mandatory training sessions in
a group setting cause (gasp) what if there was someone there that knew me or the likes.

I was sweating like a Tofino rainstorm when I walked in to the office. However right away I was put at ease that these things happen and it is nothing to be ashamed of. All aspects were handled confidentially and nobody I know except my parents and sister know that I filed a consumer proposal and was pretty much broke at the time. They all still thought I was loaded and to this day they still do. Not to be deceitful but I never said otherwise I would just change the subject.

don't worry about the trustees they are there to do a job and are extremely professional. They handle cases like mine and yours every day.

Hope this helps

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Herbert

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Re: Very difficult situation please advise regarding CP or bankruptcy
« Reply #4 on: November 05, 2017, 12:39:42 PM »
I don't think CP benefits everyone.  It doesn't even look like I would be accepted because I have no income now.  Also things like mandatory training are useless for me. I understand the system, my inability to pay came from a poor economy, chronic pain, loss of vehicle and ever changing regulation that is slowly gutting the trades, not to mention everyone who's out of work or coming to Canada are picking up this same trade as its the easiest to get in and requires nothing but a ladder and hand tools. I've decided to lay low until Jan and then I'll most likely file for bankruptcy. 

 

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