Anybody here ever declared bankruptcy:Eek:? Did it ruin your life forever? Do you have to pay cash for everything now?
Bankruptcy
- Thread starter Rockslinger
- Start date
Bankruptcy doesn't ruin your life....It stays on your credit report for 7 years after you are discharged which does make it hard to get credit cards or loans during that time.
Is this for you or a "friend"? If you are on the hook to the Bank on a personal guarantee on a business failure for $1MM+ and they won"t settle then you have no other option to get out from under. When I was in financial services I saw people file for a few thousand dollars. I clearly remember a case of two medical professionals where the wife filed simply to erase a student loan that was utterly and completely payable. They were simply too greedy to pay back the money before buying themselves each BMW's, a mansion etc. These people were only in their late 20's at the time.
In Canada? According to http://student-loan-bankruptcy.ca/ it's not all that easy to get out of your student loans...
My dad has to declare bunkruptcy when i was a kid and after that everything is cash only. Your credit rating becomes non existent for a long time. No checking accounts at banks and no credit cards of any kind. There was a statute of limitation but i don't know what that would be today and/or if it has been changed. I know my family lived very frugally after that and both my parents worked 2 jobs at a time. I can only imagine it would be much worse these days than back then. I know it was very difficult for them. Bankruptcy should only be decided as a last resort. Go see a credit counsellor first before you do anything that drastic. So it doesn't ruin your life forever but only for a certain number of years as is detailed in the statute of limitations. Once that has expired you get to start all over again.
It was a few years ago and debt was in the U.S. I think things have been tightened up down there too.
Pretty much this... There are a lot of 'free' or cheap companies out there trying to talk you into letting them strike a deal with your creditors. I'd be more wary of them than the bankruptcy in most cases as they often aren't exactly working for you.
From a glance, not a bad site:
http://www.bankruptcy-canada.ca/bankruptcy/whatIsBankruptcy.htm
I know a women that did it and she's seems to be fine with it. Just pays everything in cash and budgets properly.
I think she's 3 or 4 years into it, and in about 2 or 3 years its all over.
I think she's 3 or 4 years into it, and in about 2 or 3 years its all over.
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See this resource. Answers most questions and provides unbiased advice:
http://www.bankruptcy-canada.ca/askedus.htm
http://www.bankruptcy-canada.ca/askedus.htm
i know people that did and had credit cards within 6 months and bought a house in 2 years. i know other guys that buy a bunch of shit, declare bankruptcy so they don't have to pay for any of it and have credit again in a year and do it again. it doesn't fuck you up as people think it does.
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.
wasn't mean and i didn't do a background check on the guy. i know he told me he went bankrupt and i know he had a credit card within 6 months.
Sounds more like a consumer proposal and not a bankruptcy situation. Once you have paid off your proposal, you can rebuild your credit almost right away with a secure credit card. 6 months will "almost" bring someone back to "normal" credit rating. Might not get the lowest rates but should at least be able to get credit.
I attended a seminar by a trustee in bankruptcy. He outlined various examples of how he successfully negotiated a reasonable payment plan with creditors as an alternative to bankruptcy which would've left them with much less. Sure, they take a haircut, but bankruptcy would leave them with little or nothing.
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?
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.
1) They are 105 years old.
2) They are illegal.
3) They are bankrupt.
