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Messages - LT

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My understanding is that these will drop off your credit report 3 years after your payoff date.  My credit report states very similar things, but I am still in my proposal. Some of my creditors show zero balance, some show an outstanding balance, all show "included in consumer proposal". The reality is that for the next 3 years (until Feb 2021), you won't get your credit rating much higher that the mid 600's. Good luck.

Consumer Proposals / Re: Finally filed a consumer proposal
« on: January 22, 2018, 08:00:57 PM »
From what I have gathered through this site, friends and my own experiences:

During your proposal, your credit score will stay in the low - mid 500's. Not much you can do, your credit is shot. You can still get a credit card, but it won't do much to increase your score.  After your proposal (and 3 years following that), if you have used your credit wisely, you can probably work it up the the mid 600's.  After 3 years, once the CP has dropped off your credit report and you have used your credit wisely, it should go into 700+. YMMV, everyone is different.

Consumer Proposals / Re: 1 year this week our proposal was paid off....
« on: January 12, 2018, 10:47:15 AM »
I have 2 Mastercards from Capital One.  I had an original secured card that turned into a Gold MC. I took a chance on applying for a Costco MC.  To my surprise, I got it.  I had an Affirm card, but decided to cancel it. On principle, I couldn't pay $144 annual fee and 40% interest (even though I never ran a balance).  The only other card I applied for was an Amazon Visa.  I got declined.

Consumer Proposals / Re: 1 year this week our proposal was paid off....
« on: January 11, 2018, 01:31:32 PM »
If they weren't one of your CP creditors, try Costco Mastercard from Capital One.  I am still in my CP with a credit score in the low 500's.  The gave me a CC with $10K limit.  Who knows how they approve/deny applications.

Consumer Proposals / Re: Counselling sessions?
« on: January 11, 2018, 01:26:37 PM »
My sessions were pretty much a joke too. The first session they gave me a pamphlet on budgeting and asked me how I was doing.  The second session was all of 10 minutes, asked if I had any questions.  In fact, I gave them advice.  Ha!

Consumer Proposals / Re: Differing Opinions; Which Trustee to Trust??!!
« on: December 19, 2017, 02:36:51 PM »
Option #1 seems high.  Option #3 seems reasonable, you can always negotiate.  I think you will be fine if you offer more than a bankruptcy. Hang in there.

Consumer Proposals / Re: Cost of consumer proposal
« on: November 29, 2017, 07:35:34 PM »
Not exactly sure what you are trying to get at.  For a Consumer Proposal, the trustee takes their fee from the monthly payments to the creditors.  If your CP is refused, you are most likely forced into bankruptcy and there are a different set of fees associated with a bankruptcy.

Consumer Proposals / Re: Nervous about impending CP!!
« 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.

Consumer Proposals / Re: Do I need to wait before filing?
« on: November 17, 2017, 01:37:10 PM »
My trustee told me I did not have to stop using my credit cards prior to a CP, as long as it was normal purchases.  She told me that I could not go max out all the credit cards, like buying 5 TV's! She told me that the courts take a dim view on things like that.

As always, contact a trustee and get their opinion. Rules may have changed since I filed.

Consumer Proposals / Re: Nervous about impending CP!!
« 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.

Consumer Proposals / Re: Finding job
« on: October 30, 2017, 07:18:23 PM »
I am not so sure, I think every situation is different.  I filed a CP in August 2014, telling my creditors that my job was ending in September. I think the creditors readily accepted my CP because they knew that they would get nothing if I filed for bankruptcy.  I had no assets and no prospects of finding a job anytime soon.  I think the best advice is to talk to a bankruptcy trustee to get all your options.

Consumer Proposals / Re: Credit after completing proposal (after 3 years)
« on: October 26, 2017, 03:02:26 PM »
From my understanding, after 3 years, the CP should fall off your credit report.  However, I think each creditor can still record the fact that you filed a CP with them. 

Consumer Proposals / Re: Secured credit card and proposal
« on: October 17, 2017, 07:58:37 PM »
Unless they were a part of your CP, try Capital One. You are pretty much guaranteed that they will give you a secured credit card. They is no downside for them, they have your deposit.  I got a secured CC from Capital One for $300 (I could have increased my deposit, but didn't).  After about 6 months, they increased my limit to $2300, 6 months after that, they returned my $300 deposit and kept my limit at $2300.  All of this with my credit score in the low 500's.

Consumer Proposals / Re: Secured credit card and proposal
« on: August 31, 2017, 02:26:44 PM »
Every bank is different.  Six months into my CP, I got a Capital One secured CC for $300. Six months later, they increased to $2300 without any extra security funds.  Affirm Financial approved me for $1000 a year into my CP.  Costco gave me $10000 limit 2 years or so into my CP.  All of this with my credit score in the low 500's.

I guess my point is, try to include everything into your CP and worrying about getting a credit card later.  Getting a secured CC is fairly easy, getting a Pre-paid CC is even easier.

Consumer Proposals / Re: Secured credit card and proposal
« on: August 30, 2017, 02:22:22 PM »
Why not include that card in your CP?  You can always get another secured CC from another bank.  You can also get a prepaid CC, for example the BMO Travel Mastercard.

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