Bankruptcy

[Casa_Nova]

can you explain how consumer proposal works? Say i have a bad credit, have previously missed credit card payments but have been paid off and credit card closed, and missed out on OSAP loan payments etc. Could it be that easy to return to a 'normal credit rating within 6 months?

Don't know all the specifics myself...but from what I remember reading about: Basically you go to a trust company who will negotiate with creditors that you owe money to. The logic is, you may owe them 5K...but if you can't pay it off and declare bankruptcy, they get nothing. Whereas if they are willing to at least settle for 1/2 the payment that you owe, at least they get 2.5K still. Usually the trust company will total all your debts, work out what you can afford, and see if the various creditors will take the proposal. You can either pay of the proposal in a lumpsum or in monthly payments. Once the proposal has been fulfilled, you should be able to get a secure credit card to rebuild your credit. Usually within 6 months you should be well on your way - provided that you are not maxing out your secure credit card and are making your payments on time, paying more than the minimum etc. The whole point of the secure credit card is to prove to creditors that you are now more responsible with credit and they can trust you again.

Please note that the proposal will only work for unsecured debt ie. credit cards, most line of credits. Things like mortgage does not apply here, and I suspect OSAP will most likely not qualify either.

 

[Questor]

This genesis of this question arose from a discussion with a friend on why people pay cash at the checkout instead of using a reward credit card. She said there are 3 types of people who pay cash at the checkout.
1) They are 105 years old.
2) They are illegal.
3) They are bankrupt.

She's wrong. I pay cash quite often and I don't fit 1, 2, or 3.

 

[alexmst]

She's wrong. I pay cash quite often and I don't fit 1, 2, or 3.

Agreed. I often pay cash as I like the anonymity it often provides.

 

[Rockslinger]

She's wrong. I pay cash quite often and I don't fit 1, 2, or 3.

Oh yes, she forgot you. Sorry about that. Do you give little old ladies a quarter to save them fumbling through their little purses for the next 22 minutes at the checkout while you stand behind them?

 

[anon1]

Do you give little old ladies a quarter to save them fumbling through their little purses for the next 22 minutes at the checkout while you stand behind them?

Don't YOU?!

 

[whobee]

She said there are 3 types of people who pay cash at the checkout.
1) They are 105 years old.
2) They are illegal.
3) They are bankrupt.

I like being paid in cash, no need to worry about the person / entity not having the money. Nothing to bounce or to be declined.

 

[simon482]

This genesis of this question arose from a discussion with a friend on why people pay cash at the checkout instead of using a reward credit card. She said there are 3 types of people who pay cash at the checkout.
1) They are 105 years old.

2) They are illegal.
3) They are bankrupt.

i dont have a credit
card, never had a loan. Pay cash for everything.

 

[Questor]

Oh yes, she forgot you. Sorry about that. Do you give little old ladies a quarter to save them fumbling through their little purses for the next 22 minutes at the checkout while you stand behind them?

I bet I get through checkout with cash faster than you do with a credit card. I don't know why people think they should hold up a line just so they can save 10 cents on their credit card.

 

[diverdown]

Do you give little old ladies a quarter to save them fumbling through their little purses for the next 22 minutes at the checkout while you stand behind them?

No, I usually offer them a fiver for as many pennies as they have, I like to keep my pockets full of them. Pennies come in handy when dealing with impatient self absorbed aholes in line who are obviously having fits trying to deal with the inconvenience to their life that waiting for an old woman to make change has imposed upon them. I like to toss the pennies at them while making sure to tell them they are pennies for their 'time' not their thoughts. For thoughts I prefer to ask the sweet old woman how things are going and when she's done, wish her a nice day while reminding her to stay out of the passing lane. (I have a lead foot and I'd hate to have to punt the slow moving old bitty off the road :Eek

 

[Aardvark154]

I find this hard to believe if this person got credit cards and mortgage for a house through tradional means. If through private financing, then yes it's possible as they may take a chance and banks don't give out credit cards to recently bankrupt individuals unless it's a secured credit card and then it's usually a low amount, ie. $500 to $1000 limit.

Simon is correct, this does indeed happen at least in the U.S.

 

[Rockslinger]

I assume bankrupts are allowed to buy prepaid MasterCards or VISA cards. Yes?

 

[peter4025]

i dont have a credit
card, never had a loan. Pay cash for everything.

+ 1. I don't like credit cards. Don't have one. Don't like the fact that they can trace and find out everything you buy and you do. I pay everything in cash.

 

[smiley1437]

+ 1. I don't like credit cards. Don't have one. Don't like the fact that they can trace and find out everything you buy and you do. I pay everything in cash.

Those reward cards are the same - your purchasing habits are tracked and used for advertising and marketing purposes.

In some cases, they know more about you and and your family than you know yourself.

See this case where Target's system figured out a teen pregnancy before her own father:

http://www.forbes.com/sites/kashmir...teen-girl-was-pregnant-before-her-father-did/

 

[diverdown]

+ 1. I don't like credit cards. Don't have one. Don't like the fact that they can trace and find out everything you buy and you do. I pay everything in cash.

Okay understandable and certainly your perogative but have to ask how do you travel? By that I mean make reservations for flights, hotels, etc. Not trying to make a case for credit cards, just curious.

 

[richaceg]

She said there are 3 types of people who pay cash at the checkout.
1) They are 105 years old.
2) They are illegal.
3) They are bankrupt.

She...is full of sh*t. People pay cash because you don't need to pay interest...specially when you're buying high value items. I find paying cash the best negotiable instrument (yes i pay tax with it too). Stores still prefer cash but they don't mind CCards. When I bought my car (used) I paid cash upfront at around $8 g's (w/ tax). Dealer would rather have that than have their in-house financing chase bad paying customers every month for the next 3 years.

 

[night ride]

Credit cards are making everything more expensive for us, with charing merchants big %.
I used to pay cash just because I don't like cc' companies, but I am getting bribed now with cash back. CC companies now pay 4% cash back on things like groceries and gas. Once we're all in the habit of using our CC to pay for a loaf of bread they will pull back the bribes.

 

[richaceg]

...you get 2 months of free cable upgrade (enought to get you hooked to some shows)...then...

 

[simon482]

+ 1. I don't like credit cards. Don't have one. Don't like the fact that they can trace and find out everything you buy and you do. I pay everything in cash.

i don't have credit cards, pay my cell bill at the store every month, don't have an address. i am 100% debt free and off the grid in every way. the only thing that could be tracked to me is the junk email address's i use to sign up to forums but they never have real info about me. my name on my screen name is my real first name. that is all.

 

[Rockslinger]

I seem to recall there is one store that won't accept cash. I know there are several stores that won't accept 50's and 100's but this might change with the fancy new bills. Have you notice how thin the new 100's and 50's are? Be careful you don't give someone two because they tend to stick together.

 

[Keebler Elf]

She's wrong. I pay cash quite often and I don't fit 1, 2, or 3.

4) People who are paranoid that "Big Brother" is out to get them.