Hey there,

Just joined this site, wish i didn't have the need for it, but somewhere along the way, things got out of control, as I'm sure most of you can understand a bit about!!

anyways, I just went today and talked to a debt advisory/counselor. I just didn't know where to start really. I also didn't realize they charge a few. I actually thought it was part of a Government funded service!~ Yeah right!

Well, I feel that filing for bankruptcy is a pretty big deal, and did feel good about possibly hiring their services; which are to oversee the entire process from start to finish, provide all information and coaching and advice as needed as well as point out the best options etc. Their services however are not cheap, as expected. A couple thousand to help me eliminate about $42,000 in debt.

My question: Does anyone have any insight or opinions about hiring such a service provider? Is this necessary? I'm sure it's not an obligation when filing but do you think it's a good idea?

I welcome any and all information and opinions provided. Would like to find out what the general consensus is on this.

Thank you all in advance.
Cheers,
R1Psycho

Thank you for your reply, I am actually checking out your site now.

Could you please explain the differences between a Debt Advisory & a Trustee for Bankruptcy.

If Bankruptcy is the best option, which I believe in my case it is, then how do you make your money?
I have read some information concerning bankruptcy, but am not sure it's current or not. From what I understand, 1st time persons going through Bankruptcy who make under $3000/month and do not possess any real assets are looking at a 9 month pay back period of $200/month. After successful completion of this payment schedule along with a few other obligations, the person would be discharged of the debts and would have a credit rating of Bankrupt for the next 6 years.

Please correct me if I am wrong on any or all points. I have read these 'guidelines' on several sites BUT during my visit to the Debt Advisory yesterday, I was told that information is outdated.

I would like to possibly setup a consultation, and very soon. I live in Vancouver, BC. Do you have offices in Vancouver? If not, can you recommend a fellow Trustee located in Vancouver?

Cheers,
R1 Psycho

I have sent you an email to the address for Ira.

Cheers,
R1...

Hey JEC,

Thanks for your reply and information. I actually have a couple more questions for you, and I have also decided to go with a licensed bankruptcy trustee, For Sure!

I am curious what your monthly payment ended up being? Also how long the term was for? If you do not wish to share that info, I totally understand....I know it's a bit personal. The reason I ask is that I continue to read conflicting information on different websites.

Some say that the likely-hood of a person only having to serve the 9 month term is small, where others say it is the norm for those people who have never claimed bankruptcy before and have a monthly income lower than $1800. Also the payment fee I keep reading is $200/month.

If you don't mind telling me that information, were those figures close to the final decision handed on to you? 9 month term @ $200/month.

Thank you in advance...

Cheers,
R1....

Hi JEC,

How much did you originally owe if you dont mind my asking?

Wow, good luck with the proposal. I love it when the creditors get what they deserve!

Well put JEC, thank you - it is positive.

Anyway, I did not mean to hijack the thread from R1 so back to the question at hand. A first time bankruptcy is 9 months unless your surplus income is higher than your family exemption.

Your family exemption is usually influenced by how many people in hour household and if there are any child support payments.

The general rule is if the household income exceeds this amount even for 1 month than another 12 months is tacked on to your bankruptcy. The reason you are getting different answers is that the trustee that you work with has to interpret the act and they will all have a slightly different interpretation.

For instance, the income tax act states that child tax credit cannot be included in a bankruptcy yet the bankruptcy act states all family income in included... so what now?

The minimum tariff in a bankruptcy (assuming no surplus income) is just over $1600 so $200 per month would almost cover it.