Hi, 
 
I am at a loss. I am signing for a consumer proposal next week, but have not yet. I owe about 10K on a secured loan (personal effects - under 5K)  
and another 6K to PC finanical and 1.5 k to MC. 
 
I was under the impression that a consumer proposal is a safe way to go, however I just got off the phone with my secured creditor (CITI financial) and they said I would be ruining my credit rating and my life - meaning toruble down the road and they would (possibly) come back and collect the rest owed to them after the 3 year term. They offered to cut my payments down by 1/2 but stretch out the term, although I have nothing in writing yet. 
 
I basically need an impartial opinion. Is this a scare tactic, I don't know who to believe anymore. Trustees and creditors seem to have their own agenda. 

What happens with a proposal, even if its not rejected down the road? andIs it really no different than a bankruptcy and that they can collect even after, and all a proposal does is buy time?
 
Help me make the right decision. If anyone has been through a consumer proposal, I would love to hear your advice. I am supposed to sign next week.

Signed, confused.

Hi Mark,

Thanks for your response. It is consumer debt, but more than 50% falls under a secured loan (personal affects). Not sure how this would affect a proposal.

 Dutchy,

 Here is an important piece of information on my website that you sahould read:

  http://www.cfwgroup.ca/forum/viewtopic.php?t=56 - http://www.cfwgroup.ca/forum/viewtopic.php?t=56

 If you would like some help, call me directly anytime during the day.

Dutchy,

firstly check out Johns site it has great info,

secondly John is able to do exactly what a porposal will do for you without the credit damage. Please before you sign get the facts either from this site or cfwgroup.ca. Proposals/debt pooling is just a fancy feel good way of going BANKRUPT .

Troy

<The fees are $1500.00 for solo, or $2300.00 for a joint bankruptcy. Does it solve the problem? In more than many cases, no. >

My ten year period to qualify for bankruptcy comes up at the end of May this year.  In reference to the quote above, taken from your website, Johnny, my question is...why?  I can produce tons of info showing financial hardship (bank statements, income tax returns etc. etc.) I have no assets or personal possessions worth anything, and my credit cards are near bottomed out.  In order to satisfy the requirements laid out by THC (now Alliance) I would need an EXTREMELY high paying and stable job.  That prospect is not forthcoming.

I was hoping to contact a trustee this coming June and settle the matter once and for all.  Its not like I've been trying to dodge my responsibility towards paying my loan off.  I've made numerous attempts, they've been keeping my income tax returns and GST since 1997.  I'd say they've gotten nearly $10,000 out of me in all and I STILL owe over $25,000!  The realization that I could be facing this situation for the rest of my natural life has resulted in my only option.

So if I declare personal bankruptcy will I be guaranteed that ALL debts will be wiped clean?

 South,

 You can contact a trustee if you want. It is your choice.

 You wrote:

 "Johnny, my question is...why?  I can produce tons of info showing financial hardship (bank statements, income tax returns etc. etc.) I have no assets or personal possessions worth anything, and my credit cards are near bottomed out.  In order to satisfy the requirements laid out by THC (now Alliance) I would need an EXTREMELY high paying and stable job.  That prospect is not forthcoming."

 Here are the problems:

 1. Anyone can produce tons of information showing hardship. Things always look worse on paper.

 2. What is your bank statement going to show them? That you have absoutely no money in savings? In that case, nearly 70% of Canadian citizens who owe student loans might as well go bankrupt.

 3. No assets and maxed out credit cards is another common problem that people suffer from. This problem is as common as the Flu. It is not a rare affliction like Ebola.

 4. Another common problem among people who owe student loans is the fact that the demands outweigh the means. It would take a much higher paying job for virtually anyone who owes student loans to meet the demand.

 Now, what type of hardship are they looking for that will discharge you from the debt(s)? 

 The bankrupt would have to demonstrate hardship that proves that he or she can not pay now - or at any time in the future. TO demonstrate that you cannot pay in the future, you would be:

 a) Physically disabled

 b) Mentally disabled (institutionalized or on permanent disability with a psychiatric profile of the condition or disease)

 c) unemployable due to whichever reasons (you would outline these extenuating circumstances and authenticate them)

 d) Elderly and unable to cope

 These are some of the areas looked at.

 Also, they will look at your reason for filing bankruptcy. They will examine:

 1) Does the bankrupt owe consumer debt - and how much?

 2) What activity has the bankrupt done to try to deal with the student loan before filing?

 3) Did the bankrupt file for bankruptcy just because of student loans?

 4) Did the bankrupt make the assignment in good faith?

 etc, etc,etc.

  Lastly, you wrote:

 "So if I declare personal bankruptcy will I be guaranteed that ALL debts will be wiped clean?"

 Who knows? No one is going to be able to answer that for you. You will know on the day your discharge hearing is scheduled. If the bankruptcy trustee tells you that you will be discharged before you sign on that dotted line, get it in writing. That way, you can hold them accountable for any wrong-doing and potential malfeasance.

 MANY people in Canada have taken that dive only to find out that they spent $1500.00 (or more) for absolutely nothing. The reality is that the bankruptcy industry does whatever they can to sell you into the programs. It is not like many of these people have taken the dive intentionally.

 There is a difference between freely jumping and being pushed.