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Monday, September 7, 2015

9 months of Bankruptcy

The dreaded thing everyone wants to avoid.... Bankruptcy

When you claim bankruptcy there is a fairly simple process that you must follow. There are a few hoops that you need to jump through. None of them are that complicated but if you miss one it could extend your bankruptcy period. During the 9+ months between claiming and being discharged from bankruptcy you are bankrupt. It can be an emotional time if you well on that fact. I personally decided to be greatful and relieved that I was getting it taken care of an that my debts were being erased.

Hoop 1. My own realization that I was to far gone.

My monthly payments were probably around 1000 or more not including the house. Well I was hardly making enough to pay my current rent and put food in my mouth let alone touch any of that. But I still tried. How the heck am I going to have a life after I claim bankruptcy?
Well I didnt have much off one with the debt so I went for it about a year later than I should have but I did it. I made the appointment to go speak to a trustee.

Hoop 2. The paper work/ initial consultation

This is where you have to tell them everything that you owe and to who
-You need to show statements for bills and debts with account numbers
-Show that you have a job
-Show tax papers and bring the information that they would need to file any past years and the following year

Hoop 3. The green light and payments

You will need to set up a second appointment to meet with them and to sign everything. You need to look over everything that you provided the first time to make sure that it is all correct. You will need to pay your monthly amount and go over what that is all about

Here is a brief break down for what mine was (I am in Canada):
-If you do not have a surplus of income and you are a single person house hold.
I believe surplus is around 2000 per month- then you will have a payment of $180 for 9 months (10 payments).

If you make more than this then you will need to pay more a lot more... its 50% of your overage to a certain point then 75% after that. You may not get an automatic discharge after your 9 months.

Note**- if any one is interested on more actuate information on the process or the payments I would be happy to get the paper work and share that info.  However I was never in a surplus of income. I did make more than that a few times during the month I was paid 3 times and one month I received a bonus but it is an average over the 9 months)

Hoop 4. Credit Counselling

There are a few different hoops that I didn't need to worry about with my bankruptcy because my ex took care of them first and that is my assets. I had none. My car was already taken and so was my house. You do not NEED to give up either of these things necessarily. The car needs to fall under certain guidelines, and you have to prove that you can afford to keep your house.
There are other things as well that I just stayed away from. I didn't fight for a raise I deserved, I didn't play the lottery (your winnings would go to the trustee) etc.

The things I did need to concern myself with was that I needed to provide a filled out monthly budget sheet, my payment of 180 and my pay stubs.  (each month)

Then I needed to fulfill a requirement of going in for credit counselling twice while in bankruptcy. This was for me anyway a fairly quick meeting with one person. They go over everything in your file to make sure that you are on track, let you know where you are at and they provide you with a whole bunch of information that includes things about rebuilding your credit once discharged.

They showed me with all of the creditors that they had reached out to what they came back with. Some said I owed more, some just closed the accounts. My house- well they let me off scott free. I'm sure they knew they wouldn't get anything out of me at that point seeing it was my trustee calling but... that was a relief. Account closed, balance zero as per my credit report. It is not showing a foreclosure. It really wouldn't have  mattered at this point