The Bankruptcy Canada Support Group is for people who want to connect with other people who have in the past or are currently experiencing bankruptcy or a proposal. This is the place where people can share advice, get or give help on bankruptcy, proposals, trustees, student loans, getting credit after bankruptcy and related topics.
You’re not alone!! In 2009, more than 115,000 individuals in Canada filed for personal bankruptcy or filed a proposal.
This service is confidential as your email address will NOT be displayed anywhere on your post.
If you have a question you want a trustee in bankruptcy to answer please post it at this site.
Could someone tell me the best way to choose a trustee. Thanks.
Puzzled: Trustees all have about the same training and charge the same amount since their fees are regulated by the government.
Therefore, I picked my trustee because I trusted her advice and she seemed like a caring person.
Puzzled: I’ll second what Been There says. Some other things to look for are:
1) Does the T office treat you with respect?
2) Do they see you quickly without making you wait an excessively long time in the reception area?
3) If you have an emergency will they see you the same or the next day?
4) Do they take the time to explain about bankruptcy or a proposal so you understand the process?
I was discharged from bankruptcy last month. All the reading I have done says I can have my credit rating reestablished in about two years so I can get a mortgage etc.
The problem I am having is knowing how to start and exactly what I have to do to achieve a good credit rating.
I hope someone can help. Hopefully by giving me the exact steps to take from your own experience. It would be nice if you could also tell me if you were successful in reestablishing a good credit rating.
Thanks for your help!
Credit: First get a secured credit card. You can get one with a $75 deposit with Capital One. Use the card and pay it in full on time. After about 3-6 months, get another secured card (one with a $500 deposit). Do the same with this one (pay in full, on time). Next (after a year), get a small loan for about $2,000. That is my next move. I am trying for a loan at my bank. I am using funds that are in my savings account as collateral. I am using the loan to pay for my usual monthly bills and using the money I would normally use for my monthly bills to pay off the loan! I hope this can be useful for you.
Credit: Good advice from “Get Credit”. I live in Quebec, where a secured Capital One card is not available. I got a Peoples Trust card which is available across Canada. Peoples Trust reports your payment each month so your credit rating improves each month. Getting a card is virtually guaranteed.
You must do regular credit checks on your credit rating / credit score and get any errors corrected right away.
Always, always make your payments on time.
Don’t max out your borrowings. If you have have a credit card limit of $500 and you max it out each month you will get a horrible credit score, even if you pay the balance off on time, because the percent of your available credit is always zero. Don’t use more than 50% of the credit available.
I agree with “Get Credit” that you should also borrow $1-2,000.00 to prove your capacity to get “new” credit.
This worked for me. 2 1/2 years from my discharge I can now borrow at the same rate as the banks best customers.
Thanks to Get Credit and George for your advice. I’ll start rebuilding my credit now. It’s great getting advice from people who were in the same boat as me.
Does anyone out there have any experience, using a credit counsellor, that they can share? I have read so much online both pro and con that I don’t know what to believe.
Any help is much appreciated.
you can also try Debtor’s Anoymous for support and recovery from Overspending, Compulsive Debting, Paupersism etc. The Book, How to Get Out of Debt and Stay Out of Debt and Live Prosperously by Jerrold Mundis is also very useful information. He also has a few more books such as Earn What You Deserve, or Making Peace With Money. I am not in any way related to the author but he sure has some great info…. also DA is available online and has phone in meetings for people who dont have meetings in their towns. Good Luck.
I was discharged from my bankruptcy on July 14 2010. I wanted to help the person who asked about re-establishing their credit rating. Here’s what several people, including the bank manager told me to do:
1. Make arrangements to pay off any outstanding debts that weren’t
included in your bankruptcy.
2. Consider opening up a savings account and start saving money.
(emergency fund)
3. Consider an RSP
4. Re-establish your relationship with your bank
5. Consider getting a financial advisor.
6. Don’t panic…..
Remember your not the only person that went bankrupt in 2009/10
My husband and I were discharged from bankruptcy in June 2010. We are now on the road to re-establishing our credit and have recently been approved for a secured credit card under my husband’s name.
My questions is: Should we both get a secured credit card so that this is reported on both our credit files or will my husbands credit card report for both of us. I am an authorized user on my husbands card. Any help would be great.
Rachelle: I’m pretty sure you need a card in solely in your name in order to have the credit card company report on your payment history. It might be a good idea to check with the credit card company to confirm this.
If you do this it would be nice of you to report back here so we can all benefit from the information.
Anyone needing unbiased advice and help in rebuilding their credit should check out Debt Coach Canada in google. My trustee referred me to them and their Future Fund program is perfect for those with a consumer proposal or discharged bankruptcy or other past credit challenges. In partnership with a government regulated financial institution the program includes two new trade lines reporting to both Equifax and Trans Union for both applicants and combines online resources and financial coaching delivered online and via phone with building savings towards your goals
Further to Tad my sister is a bank manager and she confirmed that each person has a separate credit file. She advised that you should always confirm if it is the lender’s policy to report the credit to the credit bureaus and which one they report to as each bank chooses to report to Equifax or Trans Union.
I have a question…I am in the process of starting bankruptcy I have not seen anyone yet but I am going to soon…what happens if your married? all the items that I will be going bankrupt are in my name and are from my first marriage and we don’t have anything in joint. I also have an RESP for my son will they take that?
Thanks
Tammy,
My advice for you is that get consult a credit counselor (BDO is a excellent one) and ask all the questions and make sure that you understand every single answer.
There are more options to avoid bankrupt but if you decide to go for this avenue be prepare and don’t waste your money anymore and save as much as you can because the road will be not easy like before.
Just to let you know I will be discharged on October 1st.
Good luck
I earn approximately $1,400/mth. My rent is $650/mth. and I have no assets. How much should I expect to pay claiming bankruptcy?
Can I arrange to pay the trustee over a longer time period than the 9 months?
Andrea: There is a calculator that will tell you the cost of a bankruptcy and how long you will be in bankruptcy here:
http://www.bankruptcycanada.com/BankruptcyTermPredictor.php
I know from my bankruptcy that you have to pay the trustee to get your discharge.
Just starting the bankruptcy game…. separating from my husband at the same time as well…. can anyone tell me if they will split the debt 50/50 with a signed separation agreement?
Two more questions:
Please explain the exact definition of discharging a debt.
Can one file for partial bankruptcy? ie wipe out all debt except say a car loan if car payments can be kept up and vehicle is required to acquire a job (even if no job currently)?
I filed for bankruptcy in 2008 and was supposed to be discharged after except that during the time that I was waiting for discharge notice I was contributing pre-taxed RRSP which I didn’t include as part of my income. So I ended up having to pay around $15,000.00 to trustee as penalty for not declaring the RRSP contributions as part of my income. Is this how it should be?
Another question is I tried to go back to my old bank from which I had an overdrawn account of around $5,000.00 that I included in the bankruptcy. I was told that I can open an account but I still have to pay back the $5,000.00 even after being discharged from bankruptcy. Is this how it should be? What happens if I dont pay it off? And what happens after I pay it off?
Thanks.
Hi
I did consumer proposal last, I have a mortgage, I did not lose my home, I want to know if I will be able to renew my mortgage with my bank as the five year terms is up next year, Im worried cause I dont want to lose my house.
I need your advice
Thanks
We have just received a copy of an Application for Bankruptcy Order from some of our private creditors. The hearing hasn’t happened yet to let us know when this will occur and it is only for my husband, not me so far.
1) Can I get a trustee seperate from my husband?
2) Our tax returns have been completed for 2008 and 2009. My accountant is holding onto them until he is paid for completing them.
a)Will a trustee force my accountant to put them through?
b)Can we put them through prior to the bankruptcy and use the funds to pay my accounant or will the trustee seize those funds even if we aren’t in bankruptcy at the time the tax refund is received?
Any help would be appreciated.
HI i was wondering if i can claim bankruptcy i have about $20000 in credit card debit that i have been paying every month miminum payments .I just cant pay them any more. I have a house but my ex pays it i have nothing to do with the payment and i make about $ 1150 a month im on EI how much will it cost me
I was told if I could hold off til a certain time that I could also claim my student loans as part of my bankrupcy. Really trying to hold off, it’s really hard. However I finished school in late spring 2005 so the time I was told to hold off til is before the 7 year mark. Is this due to the time it takes for the claim to actually get to court?
When filing for 1st time bankruptcy in Nova Scotia and having to make surplus payments, does any one know if the surplus payments apply for the entire 21 months or just the 1st 9 months? I have heard that after 9 months of making surplus payments the remaining 12 months are made with firm monthly pymts that the trustee works out for you.
I thought that medical non-discretionary expenses applied to all medical related expenses and not just prescriptions. Can anyone confirm if only prescriptons received from your doctor are considered as non-discretionary expenses or do they also include dental, eye, equipment for CPAP machines, etc.??
I\’m in Alaska and am going to be filing for chapter 7 bankruptcy soon. Obviously, I\’m filing for a reason and I don\’t have much money for a lawyer. So, I\’m just wondering about how much I\’d be spending for a lawyer to take care of it, or if I should just learn & do it without one. Thanks for the help!
Im thinking about bankruptcy and am wondering I have stuff from easy home and have been paying on it for over 2 years .Will I be able to keep my bed set computer and T.V if I file bankruptcy ,because I got sick at work and cant afford the payments any more but I need the stuff to live .
I had filed bankruptcy 2 years ago. However I had to pay $8000.00 because I had financed a car through a relatives company. When I sold the car I gave the relative the money and this was called favouritism to a creditor. I have been living on cash for the last 2 years and it is killing me as I can’t get my discharge until I pay off the balance. Is there any where to go to get a loan and pay this off. I can afford the payments but I am sick and tired of spinning my wheels. I want to move on with my life and start establishing credit again. Any guidance is greatly appreciated
what department do I contact within the GOV.Ca for information about bankruptcy?
What happens to the bankruptcy if the person has a brain operation. Disability may be an issue now. Was in bankruptcy for over a year. Now they just want my car and 5,000.00 to finish my bankruptcy case.
Any help will be appreciated.
MD
if your situation has changed, that has to be taken into consideration, you have to supply a monthly statement and if your income changes, you may be allowed to lower your payments. Also they will not take your car if it is used for work a they will just make you pay them for the value of your car. If they want your car and $ 5000.00 then you must have some income
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I wanted to do a proposal and my trustee flat out refused and said that bankrupcy is better. I only filed because of student loans and now after 15 months of paying into bankrupcy I found out that they might not be discharged at the end of my 21 months. I misunderstood and thought they look at the last time I received a student loan which was 2001 not the last time I attended school which was 2004. What happens if your trustee knowing the reason why I applied (student loan), did not fully explain that they may not be discharged and still convinces me to file for bankrupcy even though he knew there was a chance it wouldn’t benefit me at all. What can I do?
hi. i filed for bankruptcy in may 2010. at the time i had no job was on EI and had about 50000 in student loan debt and only 2000 in consumer debt. 2 months after i filed i got a great new job that pays me over 4000/month net.
so now i’m going to be in bankruptcy till feb 2012.
my question is. my companies client is getting ready to give us a large performance bonus. like more than 10K for me. how does this factor into my bankruptcy??can i keep any of this. also i might use any money that is left to buy a newer vehicle as mine is junk and public transit is not an option where i live. can i buy a car while i’m bankrupt if i pay cash??
MY HUSBAND IS FILING FOR BANCRUPTCY AND I AM GETTING AN INHERITANCE CAN ANYONE TOUCH MY INHERITANCE HOUSE IS IN MY NAME ALSO
I filed for bankruptcy in 08. After filing my life took a change for the worst. My wife and I split, I moved away from her and our kids and made a lot of bad choices. ie, drugs and alcohol. I was working but that was to support my habit. Long story short, with my wife’s love and support I was able to turn my life around. We are back together and I have been clean for a year.
I have my life set straight again and paid off my balance to bankruptcy. They called and left a message the day after I made my payment and told me that my case was closed and I had to pay another 2000 to reopen it.
I am wondering what this means? If anyone can help please me understand this please do.
I will be starting the procedure to file for bankruptcy over the next few days. I owe more than I have ever made in a year. I work a very low level job here in Nova Scotia and barely make $1,600. Here’s the real kicker. I can only work for the next 2 months. After that – I’m back in school and back into my parents place. (They, obviously, will be taking care of all monetary costs of me living there as well as school for one year.) Will that affect my bankruptcy? I tried the bankruptcy predictor calculator. It said I would pay nothing every month. (I guess I make too little.) HOWEVER, right below it in red it said I had to pay $1,800 over the term of the bankruptcy. Is that $1,800 over 9 mths? Or over the 6 years? Is there a penalty for paying it early? This is going to be my 1st bankruptcy. One last question: Am I allowed to keep a credit card if I do NOT make it part of the bankruptcy? IT does not have late payments on it and may even be paid off when I declare bankruptcy. When I head back to school (in 2 months)….I will be moving from NS to BC. Any advice?
Get Credit’s advice isn’t exactly good. The LAST thing you want to start doing after bankruptcy is getting BACK into debt with multiple credit cards and loans (especially loans. If something happens with you getting sick or losing your job, you now have this loan you need to pay off which will start racking up missed payments)
Get yourself a credit card (ONE credit card, not multiple), and don’t buy ANYTHING on it unless you have the money in the bank to put right on the card right away.
DO NOT buy anything with the card you cannot afford if you were to pay cash.
Buy things on the card and pay the card off right away. Do this for a few months and it will start establishing your credit rating again.
@ Jan. If your husband is filing for bankruptcy, no one can touch your inherited house unless it’s in your husbands name too
I had applied for personal bankruptcy July of this year. It is my first time and dont understand a lot of things.
However my main concern today is that I just received a letter from a lawyer stating that I had been ordered by the court to pay money that was owed money as an indemnifier for a past company I worked for. Will this affect my filing?
Need Help: This debt will be erased in your bankruptcy.
Contact your trustee and add this debt to your bankruptcy. Also request that your trustee advise that lawyer of your bankruptcy and the fact that the lawyer cannot take any action because there is a Stay of Proceedings in effect.
does anyone know how long you can stay in your house if you declare bankruptcy?
Overwhelmed: This link may help you:
http://www.canadianlawsite.ca/realestate.htm#j
Hey! I have been looking for this, that’s great!But how can you “unshare” the x axis?Is it possible to share x axis after the different subplots have been created?ThanksP
Hello.This article was extremely motivating, especially since I was looking for thoughts on this subject last Thursday.