What to do

« on: June 01, 2010, 06:36:06 PM »

Confuse
Guest

Thanks to all who post these discussions and especialy to the ones that provide answer.

We are looking at submitting a proposal. We had our first meeting with the trustee and a few phone call, but I am still very confuse and not sure what the nest step would be if it is refused.

Our trustee is saying that we should be able to get something approve but I am thinking in the back of my head, what if is not accepted.

I also read about some peoples that are regretting their CP, this is teh part that worries me!

The biggest concerns seems to be that friends and familly find out, but I keep telling myself hat we made bad decisions, and we are facing up to our decision and admitting we made mistakes. We should not be a shame for that, but we still are.

We should be submitting our CP later this month, and in the meantimes, we are getting ready for this. New bank account, no more credit card, strict budget (wow this is hard).

I keep asking myself, how did we get there? The only thing that I found are excuses, House renovation gone bad, salary reduction, and never adjusting my spending habits to face these realities.

The bankruptcy would gave them 31% and we are offering 41%, so I hope this is enough, and if not I hope they will make a counter offer that is reasonnable.

Again, thanks to all cause you are helping me going through this. It is going to be a long summer!!!


« Last Edit: June 02, 2010, 08:39:35 PM by Confuse »	Logged

Re: What to do

« Reply #1 on: June 02, 2010, 11:12:17 PM »

jerseygirl
Newbie

Posts: 9

I know exactly what you're going through; we just signed our proposal last Thursday and we're still waiting to find out if it's accepted. Our offer was 52% and they would have gotten 40% in bankruptcy. I'm on pins and needles waiting for an answer and we too will have a really tight budget. We have each taken on 2nd jobs to try to pay it down faster. (Which was a really hard decision to make considering we have 2 small children). We've had our heads in the sand for so long, we've decided that we are so sick and tired of having a huge debt hanging over our heads and only being able to pay the interest that we're willing to do whatever it takes to get rid of it.

We haven't told anyone either that because even though we're taking responsibility now, we are really ashamed that things have gotten this way so I know just what you're feeling. Hang in there, I can honestly say that after we signed, I felt the first part of that weight lifted off my shoulders. I'll feel even better once I hopefully hear that the proposal has been accepted.


	Logged

Re: What to do

« Reply #2 on: July 08, 2010, 02:23:08 PM »

confuse
Jr. Member

Posts: 64

Signed the proposal on June 23. Currently waiting for some reply from the lenders.

Just found out today that my bank, which was not involved in the proposal, cancel all of my credit, even if they were joint account and that I am the only one that has filed.

they are also reviewing my car vehicle loan, and a decision will come within the next couple of days if they recall it. I guess this is standard practice when you file a proposal.

Although I still believe this was the proper decision, I am extremely nervous, and the weight that was removed when I signed the proposal is back.


	Logged

Re: What to do

« Reply #3 on: July 08, 2010, 05:26:04 PM »

jerseygirl
Newbie

Posts: 9

Sorry to hear that; we didn't have any car loans or anything when we filed so I don't know exactly how creditors handle those types of things. We had a line of credit, credit cards and of course the mortgage. I'd have to say, ours went a lot smoother than I expected. Keep us posted -- I hope they don't keep you waiting too long!!


	Logged

Re: What to do

« Reply #4 on: July 16, 2010, 09:44:58 PM »

confuse
Jr. Member

Posts: 64

Spoke to my trustee everyday this week.

The proposal was accepted on wednesday by 90% , so that is a good news, and my trustee tols me that they can not recall the car loan, so that was another good news.

But we are still having a proplem with the bank that was not included. The information that was register against our house is suppose to include everything that we owed to the bank. But they are now saying that the LOC is not guarantee.

So we are still in a waiting period, but I am a lot less stress knowing that it was approved, and if we have to signed a revised (not sure of the correct term) proposal, it should be accepted.


	Logged

Re: What to do

« Reply #5 on: July 17, 2010, 12:42:01 AM »

JEC
Full Member

Posts: 163

I'm glad your proposal was accepted..that's great news.

Is it okay to have a line of credit while paying a Consumer Proposal? Maybe that is the issue with the bank. It was a joint LOC.....so they withdrew your priviledges and cancelled the account.

I was told no credit cards. No one said anything about a LOC, but I didn't ask either.

Let us know what happens. That is interesting.


	Logged

Re: What to do

« Reply #6 on: July 17, 2010, 11:02:36 AM »

jerseygirl
Newbie

Posts: 9

No LOC's either; credit is credit from what I gather, no exceptions.

I'm glad your proposal was accepted -- it's a huge relief isn't it? We just had our first counselling session which only took about a half hour. They went over the votes with us and we found out that our creditors approved 100% which is something that is very uncommon apparently. She said usually there's one or two that vote no. Sounds like you're well on your way -- good luck!!


	Logged

Re: What to do

« Reply #7 on: August 22, 2010, 07:02:21 AM »

confuse
Jr. Member

Posts: 64

MY proposal has been accepted and now made the 1st payment. On my side everything is going well. Since I filed alone, some of the credit card cie, decided to go after my spouse, and as nice as they been to me, they are very agressive and mouthy to my spouse. They have raise the interest rate and are charging all kind of late fee.

We have a meeting witgh the trustee this week to review all this and her decision is almost made up, that she will be filling a proposal.

4 months later, here we go again!

Will keep you post it!


	Logged

Re: What to do

« Reply #8 on: August 26, 2010, 11:14:38 PM »

Randal
Newbie

Posts: 25

Hi Confuse,

OK, I am a little concerned that you filed a consumer proposal and did not make it a joint proposal. Maybe I am wrong but if you offer 41 cents on the dollar and now she offers 41 cents on the dollar and the Trustee gets to charge another whopping fee, how does that work out? you may as well have gone to a credit counselor - I am sorry but this seems wrong to me.


	Logged

Re: What to do

« Reply #9 on: August 30, 2010, 07:27:36 PM »

confuse
Jr. Member

Posts: 64

There is part missing to help you understand better. We were suppose to file jointly at 42%, we had 100K in debt and 65 was by myself. At the last minute, our trustee informed us that the bank had linked our LOC to the house. So I decided to file alone for 25% of the debt.

During the process, the bank informed our trustee that the LOC was not loinked to out mortgage. That was OK with us, but after a few weeks a Credit card company (which we did realized that she was a secondary) came after my spouse and were requesting all kind of penalty and charging us high interest. They wanted a large payment, whcih we don`t have. So now we have no choice but to file for her and we will be offering aroung 36% for her debt.


	Logged

Re: What to do

« Reply #10 on: August 31, 2010, 09:20:41 PM »

Randal
Newbie

Posts: 25

That is pretty frustrating, it is too bad no one pulled title to confirm the status of the LOC. I am still not 100% certain of what happened but it sounds like it is all sorted out now. It is usually better/cheaper to file a joint proposal.

Those sound like pretty high numbers, what are you worth in a bankruptcy?


	Logged

Re: What to do

« Reply #11 on: September 03, 2010, 09:21:19 PM »

confuse
Jr. Member

Posts: 64

Yes, we are close to having this setlle (I hope). Our trustee did pull the title, and there was a clause that attached all loan, LOC, CC to the property, but the bank, for some unknown reason, send paper work to our trustee that these were unsecured and they wanted them included in the proposal. At that point there were nothing we could do.

As for the amount being so high, this is due to a RESP that we took for the kids.

The only advice that I would have for anyone thinking of filling alone, would be to get a copy of your spouse credit report to see who is reporting on her/his cerdit. If we would have done this, we could have saved us many problems.

But what is done is done and we learned from our mistake.We will take this new chance to get our financial situation back on track.


	Logged

Re: What to do

« Reply #12 on: September 04, 2010, 07:03:58 PM »

Randal
Newbie

Posts: 25

I think I have heard about this situation. I believe the creditor is Scotia?? They have some clause that ties all the current debt onto your title and is now considered secured. I hope someone challenges that as it does not seem fair to have those cards secured and yet they still charge 20% for money that is backed by real estate... that is almost criminal.

RESPs should be exempt too... Oh well, It is good that everything will get sorted out and you get things back on track.


	Logged

Re: What to do

« Reply #13 on: September 04, 2010, 09:13:31 PM »

JEC
Full Member

Posts: 163

Confuse..I'm glad that things are getting sorted out for you. It's hard to do all the 'homework' when one really doesn't know the process and all the legalities. If a Trustee works for the creditors...the he/she really won't give any pointers beforehand...just give you amounts to pay.

I'm now confused though. I don't mean for you to reveal your personal situation...maybe Randal can jump in..... Grin

.... what did the Bank do that was wrong? A consumer proposal is only for unsecured debt..right? First, Confuse's bank said that the credit cards, LOC, and maybe mortgage was secured. So those 3 items wouldn not be part of a CP..and Confuse would continue to repay those debts.

Then the bank renegs on that situation and says that the LOC and credit cards are not secured and wants them added to the CP.Therefore, they would be paid off in the CP.

Isn't the bank then getting less money back then if it made Confuse pay the whole owed amounts of the credit cards and LOC.

It seems to me that the bank did Confuse a favour by making those 2 items get paid off through the CP. Maybe I'm not understanding the situation.

I'm learning so much here. Thank you for helping me to understand the various situations!!!

JEC


	Logged

Re: What to do

« Reply #14 on: September 06, 2010, 11:10:03 AM »

Randal
Newbie

Posts: 25

Actually, Now that you mention in, I re read the thread and I am a little confused too?

Was the debt included in the CP? or did it end up secured? You have no equity so even if they said it was secured you are insolvent and cant pay. I dont think they can take security in excess of the value of the asset. We need someone who can reference the act here... Trustees?


	Logged

Pages: [1]

« previous next »