I`m so screwed.. please help

November 26th, 2009 by Questions

This has got to be the most terrible question you`ll ever receive so please pardon me. Here goes.. I left my last job on Dec `07 and started to do a Home Study about a Work-From-Home business.

I spent money for this promising business. Sadly it turned sour especially when I injured myself and was unable to walk for a few months (up til now I`m not fully healed) and still I`m afraid to find employment. Even walking for 5 blocks hurt walking back.

I used up all of my credit cards, overdraft, resources.. borrowing money from family and friends just to save my business and I now have too much shame to face any of them. I would also have gone for a part-time work but still was even unable to walk. I didn`t know where and how to turn to.

I am very embarrassed that I cannot help myself. I feel helpless living in my mother`s house and unable to help for food and such. On top of that we/she has bill collectors harassing her/me all the time. I don`t know what to do.

Please, any help will be appreciated.

Posted from: Alberta


One Response to “I`m so screwed.. please help”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

In terms of what to do, we suggest people consider the following options when they are experiencing financial difficulty include:

1. Negotiate with your creditors. Explain why you have fallen behind in payments. Outline your financial situation and expectations for the future. Suggest a payment plan that is realistic and reasonable for both you and your creditors. As this is an informal process make sure that if you come to an agreement get written conformation. .
2. Apply for a consolidation loan. Take out a loan to pay off all of your debts. This can potentially lower your interest rate, total monthly and sometimes the total length of the contracts. With consolidation loans it is important that you examine your current spending habits and stop using your so you do not continue to fall further behind.
3. Make an application to Credit Counseling. This is a voluntary program where your debts are pooled together (they aren’t actually paid off) so that you are only required to make a single monthly payment to a non-profit counseling agency. As you make your payments the agency forwards funds to each of your creditors in proportion to your total debt. The advantage of this procedure is that usually the interest on your unsecured debts is reduced to prime or even eliminated. You are required to repay 100% of what you owe, but because of the reduced interest your monthly payment is much lower than all of your minimum payments would have been without the plan.
4. Make a proposal to your creditors under the Bankruptcy and Insolvency Act. This solution is used by people who cannot afford (or get approval for) a consolidation loan or a credit counseling plan, but don’t want to file bankruptcy. In a proposal you offer to repay a portion (perhaps 100%) of the debt that you owe. Proposals are an excellent alternative to bankruptcy, but they are not well known so I suggest you contact a local trustee and ask them about proposals if you are interested in this solution.
5. File for bankruptcy. If none of the other procedures listed is appropriate for you then bankruptcy may be correct solution. The concept behind bankruptcy is that you cannot afford to repay even a portion of your debts. To file bankruptcy you must meet with a licensed trustee.

As eligibility for these options often depends on cash flow, when you are not working often the only option availabe is the bankruptcy, but to determine that you are best to contact a local trustee and they will help you determine what option would fit your situation best.

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