filing for bankruptcy

Discussion in 'I Have a Question...' started by morning rush, Jan 30, 2013.

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  1. morning rush

    morning rush Well-Known Member

    yep tomorrow I have my appointment for it and I'm nervous. I had a credit card when I was in university YEARS ago, but I can't work and so can't pay for it normally. I closed it, although they said it was frozen instead of closed. And for about three months they gave me a break so I didn't have any interests, but now I do and I can't afford it anymore. I'm tired of starving and I'm going to need clothes soon, either that or I'm going to be walking around naked...I should have done this a lONG time ago...and I won't mind not having a credit card anymore...

    anyone here filed for bankruptcy?
  2. pickwithaustin

    pickwithaustin Staff Alumni

    Get some solid advice before you do this. One credit card is generally not reason enough to do bankruptcy. Are they staking out your house, garnishing your wages, trying to take your home..? Just stop making payments if you cannot afford to and get the things that you need to live on instead. Perhaps there is more to it than you've said, but I am not understanding why you need to declare bankruptcy.
  3. morning rush

    morning rush Well-Known Member

    oh it is reason enough. Did I say somewhere I was rich? Because I'm not. I'm poor. I don't work and I live in a building for people at risk of being homeless. Yeah stopping paying my credit card will result in my being sued and going to jail so I don't think so.

    My mom was like you telling me to keep my credit card and not declaring bankruptcy. Then she got a credit card and overspent and couldn't afford to pay it back so she went into bankruptcy.

    I have been trying to pay or not pay for a few months but that doesn't work least by going to a person who does this, I'm covered from being sued and I won't have to pay any interest anymore. I'm assuming you know nothing about it...or it's different from usa to canada...
  4. morning rush

    morning rush Well-Known Member

    pickwithaustin, I'm kind of upset by your comment, you're assuming I am doing this on whim...what makes you think I didn't think this through and that I don't know what I'm talking about? that I am not eligible? do you know my life story?
  5. pickwithaustin

    pickwithaustin Staff Alumni

    I apologize if you were not looking for input. I do know a lot about financial matters and was replying to your post with the intentions to help you. I never said you were rich, in fact was making a point much to the contrary. The things I stated and asked should be the first questions asked by any good financial adviser. I am sorry if my attempting to provide some additional insight was not what you were seeking. As you said, perhaps it is different in Canada. In the U.S., you don't go to jail for not paying a credit card. Canada may have more jail vacancies, but in the U.S. the prisons would overflow if that were the case.
    Last edited by a moderator: Jan 30, 2013
  6. justMe7

    justMe7 Well-Known Member

    May I ask how much you owe abouts? Surely they can be reasonable and talk with you about some form of payment. Most credit card companies just want to get money back, so even if you come to them offering to pay something if anything back per month they'll generally take it.

    Idk? But I get where you're coming from. Sorry if you've tried this and they're being jerks about it. Strange though, if you don't own your property I don't see what they can do. They won't put you in prison for being unable to pay a credit card unless there is some direct form of fraud. Even then it has to be serve enough as far as im aware.

    Have you talked with anyone in a financial institute about this or someone who deals with welfare support? They're the ones who know the reality vs the empty threats. I would not suggest applying for bankruptsy tbh if there are other means
  7. morning rush

    morning rush Well-Known Member

    I have learned to be honest with my feelings, I'm sorry if they hurt but that is how I felt. I owe a few thousands of dollars on the credit card and I've been trying to pay it for years now, by either not paying for a few months, or paying under the minimum amount and the interest kill the chance to get it down reasonably. I barely make enough to survive since it's government check. I would work if I could but I'm being treated for stuff that keeps me from working.

    I would be sued nonetheless. When I said you thought I was rich was when you started saying people taking my house, I don't have a house.
  8. morning rush

    morning rush Well-Known Member


    I know what you're saying. I'm seeing a financial advisor tomorrow that specifies in bankruptcy and other things. I'm going to talk to him with my papers and see what is the best solution. that's what makes me nervous because what if he doesn't take me...I am scared of what be honest I don't want another credit card EVER....nowadays you have gift cards prepaid, disposable credit cards (yes I know about the fees) and I have a debit card so...and of course paypal...

    yeah they do threatened, but not now...because they stopped the interests for three months and so I was able to pay it off a bit but now the interests are back and for me it's too much...

    what can they do exactly if I don't pay them?
  9. pickwithaustin

    pickwithaustin Staff Alumni

    THAT was the whole point. You have nothing for them to take or gain. More than likely, they will write you off. The cost of suing you, and with you unable to pay and with no assets or job they can attach, negates fearing legal actions.
    It is also very likely that a bankruptcy won't be granted over the amount of a few thousand dollars.
    Again, I apologize for trying to be of help. Definitely get a second opinion if someone is recommending bankruptcy as the solution in your particular situation.

    Best wishes.
  10. justMe7

    justMe7 Well-Known Member

    Have you tried talking to other credit card companies and explaining the situation you are in? Potentially if you are just paying off interest that's counter-productive and boarderling entrapment imo. You could explain to another credit card company that you are trying to pay off a card and would like to use a credit card in the future. So if they could give you a credit card, transfer the debt to theirs, freeze the account and allow you to pay it back over time.
    It's a bit far fetched, and it depends on your presentation tbh but it has worked for some.

    Though sorry for repeating myself but have you talked to anyone in the welfare department about being tied to a high interest credit card? They are very familiar with these situations and know the best routes to dealing with these.

    They wont sue you for a few thousdand dollars. They won't sue you for $40,000 even, as long as you are in some sense working towards paying this off. If you had some institutes support aswell, it shows a legal productive effort on your part. bankruptcy sounds extremly too harsh here, especially when you don't own your own property at the moment. Who suggested bankruptcy?

    Oh sorry didn't see your post. :) That's great that you're going to see someone, though please please don't sign anything tomorrow if he specialises in bankruptsy. He might be more inclinded to promote that idea when there could be others. Maybe tell him that you are in a financial crunch at the moment, you want to secure your credit card debts but are having trouble with the payment plan you are currently in. You defiantly dont want to sign a bankruptcy agreement, not for this imo. I think there are better solutions that will help you out in the long run.
    Last edited by a moderator: Jan 30, 2013
  11. morning rush

    morning rush Well-Known Member

    pickwithaustin, on the net is hard sometimes to understand what one might mean. That's why talking( or writing) is important. I am honest with people and expect honesty can hurt but at least I'm not talking about you behind your back or being sort of cryptically mean.

    I do appreciate your input, otherwise I wouldn't be talking to you...thank you for taking the time to reply and let me know more about it...
  12. morning rush

    morning rush Well-Known Member

    my mom had 20 000$ on her credit card and she went to bankruptcy, she had 9 months of small payments to make to the people at the financial place and they took the tps (its a country tax). Her last month is february and now she's free.

    I was recommended by someone a LOOOOOONG time ago but didn't. but now my mom says I should, that's why I'm going.

    yeah I don't think credit card days are over...

    you know I'm starting to think I'm not talking the same as you guys are. The place I'm going to is supposed to clear the debt and protect me from being sued, in return I pay a small fee towards that what you guys refer to as bankruptcy?
  13. justMe7

    justMe7 Well-Known Member

    Well I suppose we're talking about the samething. It'll follow you though for atleast 3-5 years, meaning(as far as Im aware) you won't be able to take a credit card out,(unless it's a specific plan) you'll have trouble getting a place with that sort of history, and if you want anything that involves credit checks you'll be in a difficult situation.

    The only reason I mention it is it's not a nice thing to have on your plate for those years. But yes I get what you're saying. I imagine you'll be fine in that regards considering the amount vs your income. I hope it goes well at the meeting and you get the protection you need. It is painfully unfair to have to pay back credit cards when the interest eats away at the majority of your payments. Sorry for not really having anything useful to add. I really hope it goes well
  14. Acy

    Acy Mama Bear - TLC, Common Sense Staff Member Safety & Support

    Hi, morning rush. I'm really sorry you're facing such hard times! *hugs (if that's ok)*

    Pickwithaustin makes some suggestions that are valid no matter the source of finances or what one does or does not own, owe, do, or have. There might be alternatives to filing for bankruptcy, and a good adviser will discuss any alternatives available with you. I noticed that Pick said you're in Canada, so I googled "bankruptcy canada". Here is a page from the Canadian government on bankruptcy and financial issues that you might find helpful: Arm yourself with knowledge so that you can make the best choice for YOU.

    I hope that you find some resolution and that life eases up on you soon no matter what course you take with this. Please take care and be safe.

    PS: I have also struggled financially for years. I'm not yet at the point you're at, but despite a year's reprieve (12 months' support payments from my ex), my financial ruin might happen a year or two down the road. I know how anxious that makes me and I suspect that your own anxiety might be running high. My PM box is open if you want to vent or talk.
  15. silent_chaos

    silent_chaos Well-Known Member

    I filed bankruptcy a couple years ago. I was told I had to wait 6 month after I stopped paying on everything. I had 10,000 in credit card, 5,000 of that was intrest . And I had 60,000 in medical bills and I was being garnish for the medical bills. It's scary at first but when its done and you look back it wasn't so scary. Be aware the process takes months. Mine took 8 months. Good luck.
  16. silent_chaos

    silent_chaos Well-Known Member

    It depends what chapter you are filling. 7 or 11. One is where you don't have to pay anything back, and the other you pay managable payments for a certain amount of time, I think I remember them said 5 years.
  17. morning rush

    morning rush Well-Known Member

    yes I'm in the proposition instead of bankruptcy. I will have to pay a fee minimal every month for 5 years. Clearing my debt but without the interests. It's actually a 5 000$ credit card plus my student loan. Not as much as you, mind you but still. I am relieved that I went to be honest, it wasn't as bad as I thought it would be and I was worried they wouldn't take me because it's a small debt.

    I had no idea I was going to wait that long. I have an appointment on monday to see the person in charge which I assume will sign the papers and stuff. Thanks so much for letting me know of your experience...I don't feel so alone :)
  18. Theodora

    Theodora Well-Known Member

    I got into debt 8 yrs ago. Long cleared now but terrifying at time. So terrifying that wouldn't get a credit card until recently and then arranged for it to be automatically paid in full monthly.
  19. FrainBart

    FrainBart Staff Alumni

    Morning rush, dont go for bankruptcy because their is a fee involved, You are better off just not paying, as on low income you have to only pay debts that are considered necessities. I do not know where you are from, so I will give some general info.
    (using based on UK)
    Priority debts are the ones you need to focus on, these include; Rent, Electricity and gas bills, Council tax.
    Water is considered a non priority debt, as legally it is a minimum requirement for a basic standard of living, (in the uk) under no circumstances is your water to be allowed to be turned off.

    Credit cards, credit companies, are non priority, if you are concerned however, allow it to go to collectors, as they can accept a payment of £1 (in the UK again) a month. They can only take what you can afford, and as it is you cannot afford repayments. Your standard of living is far more important than paying off any credit card.
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