I need help

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blue

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I need help
« on: November 02, 2016, 10:35:08 AM »
I have just discovered this site while laying in bed losing sleep from being stressed out. I'm in a lot of debt, and it's just all I can do to stay afloat, never mind actually paying it all down. Got into this situation after a combination of misfortunes and admittedly some bad habits.

I now have the government sending threatening legal action on past taxes owed, and the only thing I can think of is to take out any RRSP's I have to try and pay them some of what I owe. And what brought me here is the other option I've considered which is financial help or bankruptcy. I've even had suicidal thoughts. Just thoughts that pass, not serious... but still, I feel horrible about all this.

I have a family and I don't want them to suffer. I do have a house that I don't want to lose, and we need our vehicles for work and family needs. If I didn't have all this satellite debt, the mortgage would be paid no problem with lots to spare.

I feel like I need a trusted advisor, like a Suzie Orman type, to steer me in right path. Don't know where to turn. Need help. In Edmonton area.

Thanks all :)

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Jennykk

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Re: I need help
« Reply #1 on: November 02, 2016, 10:54:36 AM »
Hi there.

Most of us here have been in that same situation. It is very stressful. But there is hope. Have you seen a trustee yet?




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blue

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Re: I need help
« Reply #2 on: November 02, 2016, 11:14:38 AM »
Hi there.

Most of us here have been in that same situation. It is very stressful. But there is hope. Have you seen a trustee yet?

No, I honestly have no clue what my first step should be. Only found this site last night, so just starting to learn. I can't afford to make the wrong move anymore. Not even sure if pulling my RRSP would be the best course of action? I'm not sure if I should try to keep swimming, or look for other options.

I suppose what I'm really looking for is to speak with an impartial expert (no vested interest) that can analyze my situation, do the math, and determine the best course of action.

Any advice is appreciated.

Thanks

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Jennykk

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Re: I need help
« Reply #3 on: November 02, 2016, 11:44:23 AM »
It really depends on how much you owe, your assets and your income.

I filed a consumer proposal in Aug 2016. Before making that decision, I tried getting a consolidation loan, talked to a non profit credit counselling agency and a debt restructuring agency. It was a lot of research.

The first consultation is usually free of charge. You may want to consult with more than one trustee to weigh all your options.

My debt situation is a total of $46k. Most of it are credit card debts accumulated over the years. I have not missed any payment. But the interest is just killing me. I don't have much in my rrsp to pay for my debts either.
My consumer proposal was accepted for $250 a month for 58 months. I am a homeowner but there's not much equity on it. I get to keep my secured assets in a proposal. Again, each situation is different.

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blue

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Re: I need help
« Reply #4 on: November 02, 2016, 11:55:47 AM »
It really depends on how much you owe, your assets and your income.

I filed a consumer proposal in Aug 2016. Before making that decision, I tried getting a consolidation loan, talked to a non profit credit counselling agency and a debt restructuring agency. It was a lot of research.

The first consultation is usually free of charge. You may want to consult with more than one trustee to weigh all your options.

My debt situation is a total of $46k. Most of it are credit card debts accumulated over the years. I have not missed any payment. But the interest is just killing me. I don't have much in my rrsp to pay for my debts either.
My consumer proposal was accepted for $250 a month for 58 months. I am a homeowner but there's not much equity on it. I get to keep my secured assets in a proposal. Again, each situation is different.

That really cuts it down a lot. That's the sort of thing that I'd like. I just feel like I need a real plan that is achievable. I just feel like my load is too much right now.

Can I ask, are you in the Edmonton area? Looking for recommendations for a trusted good place to talk with.

Thanks!

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Jennykk

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Re: I need help
« Reply #5 on: November 02, 2016, 12:12:07 PM »
I am in Calgary. :)

The trustee that handled my proposal is Hudson&Co. I hired a debt restructuring company (4Pillars) to work on my case. They will do all the math, prepare all the paperwork for the trustee and provide pre and post cp services.  Some people here have gone directly with a trustee which is okay, too.

It is good that you are taking action now. I have been in that situation recently. After my proposal was accepted, I felt so much relief. Now, my focus is rebuilding credit and paying off my cp as soon as possible.

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blue

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Re: I need help
« Reply #6 on: November 02, 2016, 12:33:22 PM »
I am in Calgary. :)

The trustee that handled my proposal is Hudson&Co. I hired a debt restructuring company (4Pillars) to work on my case. They will do all the math, prepare all the paperwork for the trustee and provide pre and post cp services.  Some people here have gone directly with a trustee which is okay, too.

It is good that you are taking action now. I have been in that situation recently. After my proposal was accepted, I felt so much relief. Now, my focus is rebuilding credit and paying off my cp as soon as possible.

Hearing these words is very comforting to be honest.

I feel like I just need a fresh start. I haven't even figured out the math on if it's worth it to keep trying to pay all this debt (a lot of it is joint between my wife and I BTW)... as in, is it just a losing game with no end in sight? In other words, is it better to just throw in the towel and rebuild, and the cost of doing so being less than the cost of continuing in my current course?

I just have so much stress from this. It keeps me up at night. I just want to do what's best for my family and would like to try and keep the house and vehicles.

What are the repercussions of doing what you did? I always remember the "bad credit for 7 years" line.

Thanks


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Jennykk

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Re: I need help
« Reply #7 on: November 02, 2016, 01:05:14 PM »
Filing a consumer proposal stays on your credit file for 3 years after discharge. 7 years is for bankruptcy. After the 3 year period from date of discharge, it will be purged from your credit file.

I believe you can pay the proposal up to a maximum of 60 months. Mine is $250 per month for 58 months. But I plan to pay it off in 2 years as I am expecting some bonus from work and my mortage will renew in 3 years. I will make extra payments when I have the funds!

Your credit score will also take a hit. My equifax score is 418 right now. I obtained a capital one cc to start rebuilding my credit. I was granted a $2500 limit with no security deposit.

A consumer proposal is open and interest free. You can pay it off earlier so you can start rebuilding credit asap.

Hope this helps.

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blue

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Re: I need help
« Reply #8 on: November 02, 2016, 01:32:41 PM »
Filing a consumer proposal stays on your credit file for 3 years after discharge. 7 years is for bankruptcy. After the 3 year period from date of discharge, it will be purged from your credit file.

I believe you can pay the proposal up to a maximum of 60 months. Mine is $250 per month for 58 months. But I plan to pay it off in 2 years as I am expecting some bonus from work and my mortage will renew in 3 years. I will make extra payments when I have the funds!

Your credit score will also take a hit. My equifax score is 418 right now. I obtained a capital one cc to start rebuilding my credit. I was granted a $2500 limit with no security deposit.

A consumer proposal is open and interest free. You can pay it off earlier so you can start rebuilding credit asap.

Hope this helps.

That sounds really good. I will look into this.

Thank you so much!

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blue

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Re: I need help
« Reply #9 on: November 02, 2016, 01:52:52 PM »
So, what's the advantage of going with 4Pillars first instead of Trustee?

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Jennykk

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Re: I need help
« Reply #10 on: November 02, 2016, 05:42:06 PM »
I haven't consulted a trustee directly so I really can't tell you more. I found this forum after I signed a contract with 4pillars. Anyway, I suggest you read up on the experiences of the other members here who went directly with a trustee.

4pillars charge a fee for their services. Part of their services include credit rebuilding and preparation of documents for the trustee. They have partnered with trustees who will handle the filing and the legal part. I have met with the trustee assigned to me twice - 1. When i signed the proposal and 2. For the creditors meeting.

Trustees get a percentage on the amount you pay for the proposal. That is how they make money out of this.

Advantage - Let's see... In my first consultation, they presented all options to me - consolidation loan, debt mgt plan, consumer proposal and bankruptcy. I did my research after that and even applied for a consolidation loan from a credit union. Of course, I got declined as I am in no position to take on additional debts. I also consulted a non profit counselling and they offered $1,018 for 48 months with interest. I don't want to do bankruptcy either because I want to keep my house. I like the support services they provide especially when the collection calls started.

I have my first credit counselling session and credit rebuilding appointment in 2 weeks. I will post updates by then.




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cityfarmgirl88

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Re: I need help
« Reply #11 on: November 03, 2016, 09:01:54 PM »
Hello

My husband n I are in 1  year of cp. we both went to mnp. Thought about it for a long time.  We paid bills on time. Just the interest keeping the bills the same   We r able to keep the house as there's not much equity also not much asset too. My hubby pays 525 monthly. ( was 70,000 ). Mine is 450 monthly. - 55000 (was).  We could have filed as joint but we have more individual than joint. So my trustee said we both file as separate.   My goal is to pay off in a year.  And my hubby - in 2 years.

We felt so much better. Yes our credit score took a huge dive. My hubby and I  both of us approx 530.  That was 6  months into cp.  I was able to get ct MasterCard at first 2000, now up to 4500,  and Capitol one unsecured for 4000. Which I put. Away,    My hubby gets affirm limit is 1000   Right now my score is 616.  My hubby is 635.

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blue

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Re: I need help
« Reply #12 on: November 04, 2016, 09:36:36 AM »
Hello

My husband n I are in 1  year of cp. we both went to mnp. Thought about it for a long time.  We paid bills on time. Just the interest keeping the bills the same   We r able to keep the house as there's not much equity also not much asset too. My hubby pays 525 monthly. ( was 70,000 ). Mine is 450 monthly. - 55000 (was).  We could have filed as joint but we have more individual than joint. So my trustee said we both file as separate.   My goal is to pay off in a year.  And my hubby - in 2 years.

We felt so much better. Yes our credit score took a huge dive. My hubby and I  both of us approx 530.  That was 6  months into cp.  I was able to get ct MasterCard at first 2000, now up to 4500,  and Capitol one unsecured for 4000. Which I put. Away,    My hubby gets affirm limit is 1000   Right now my score is 616.  My hubby is 635.

Thank you for sharing! My situation sounds similar in many ways.

It sounds like a decision that you are overall happy with, taking into consideration both the good and the bad?

Sorry, what is MNP?

Thank you!

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blue

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Re: I need help
« Reply #13 on: November 04, 2016, 09:45:42 AM »
So, I met with 4 Pillars yesterday. We discussed Consumer Proposal. I must say, the numbers he was proposing to me were kind of amazing.

Now, having made bad decisions before, I naturally need to know if this would yet just be another one. I need to know if I can trust these guys. They seem legit, but I'm now in the mode of research and verification, and I want to know if anyone else has ever used them? Can the be trusted? Are they as good as they present themselves to be? They present good testimonials, but of course they would never show me the bad ones :) When I was there and asking for references, there happened to be another client there that he asked to share her story with me if she was willing, so it was impressive to meet an actual client face to face that was happy.

But because this is such a huge decision, I don't want it to turn into one of those "too good to be true" cautionary tales, you know?

Thoughts?

Thanks

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Jennykk

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Re: I need help
« Reply #14 on: November 04, 2016, 11:00:16 AM »
Hi Blue,

I went with 4pillars. As I mentioned before, I considered and applied for the other options available to me before I signed a proposal. The only thing I didn't do was to go directly with a trustee because I didn't know how that works at that time.

They were able to negotiate my $46k debt to $14,500 or $250 per month for 58 months. For me, this is a good deal even though canadian tire asked for the lumpsum clause to be removed in my proposed terms.

I understand your hesitation because I have been in that situation, too. I suggest you take your time and talk to other trustees for comparison.

 

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