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bellum99
Joined: 23 Jan 2003
Location: don't need to know
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crescent
Joined: 15 Jan 2003
Location: yes.
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 Posted: Thu Mar 27, 2008 4:43 am Post subject: |
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What?
I was informed that one could not use bankruptcy at all, as an escape from student loans.
Damn!
I'll have been in Korea for 7 years as of next year. I may even stay 10. I would have declared bankrptcy if i knew I could. |
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Hanson
Joined: 20 Oct 2004
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| Posted: Thu Mar 27, 2008 6:58 am Post subject: |
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| Declaring bankrupcy is no cake-walk - there are some serious consequences... |
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twg
Joined: 02 Nov 2006
Location: Getting some fresh air...
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| Posted: Thu Mar 27, 2008 7:14 am Post subject: |
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| Do tell, Hanson... |
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Hanson
Joined: 20 Oct 2004
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| Posted: Thu Mar 27, 2008 7:35 am Post subject: |
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| Not me, dude, I paid as I went through uni... My friend back home is going through this and the penalties are heavy... If you're curious, do a search... |
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laogaiguk
Joined: 06 Dec 2005
Location: somewhere in Korea
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| Posted: Thu Mar 27, 2008 8:33 am Post subject: |
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God, so many artsies (almost always artsies) feel that bankruptcy is just a cake walk and and easy option. One, as Hanson said, it's not as fun as some might think.
Two, no matter how much the banks are making, society can't just pay for all your useless degrees. You chose it, you pay for it. While some people actually do need to declare bankruptcy, it's not some easy out. Work it off. |
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twg
Joined: 02 Nov 2006
Location: Getting some fresh air...
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| Posted: Thu Mar 27, 2008 9:13 am Post subject: |
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| Hanson wrote: |
| Not me, dude, I paid as I went through uni... My friend back home is going through this and the penalties are heavy... If you're curious, do a search... |
Ok
http://www.bankruptcycanada.com/Personal-Bankruptcy-Overview.htm
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...You can only go bankrupt or file a proposal if you use the services of a trustee in bankruptcy. You can locate a trustee by looking in the Yellow Pages or by visiting Sands' website at www.BankruptcyCanada.com
There is an immediate stay of proceedings once bankruptcy is filed electronically with the Superintendent of Bankruptcy.
That means creditors cannot take any action to seize assets, other than those signed over as security in the event of non-payment. Nor can creditors seek a court order to garnishee wages. Collection calls also stop once the debt collector knows the individual has filed for bankruptcy.
In most cases only your creditors will know you have filed. Only in rare circumstances is a legal notice placed in the local newspaper.
In the most common type of personal bankruptcy, a creditors' meeting is not held unless requested by the Official Receiver (Office of the Superintendent of Bankruptcy) or by creditors.
First-time bankrupts are entitled to a discharge after nine months, during which time they cannot be a director of a company, must make monthly payments to the trustee, turn in all credit cards, borrow no more than $500 from anyone without divulging they are bankrupt, report monthly income and expenses to the trustee including copies of pay stubs, and attend two counselling sessions on money management.
DISADVANTAGES
For a person facing a financial crisis, Sands says there are really very few disadvantages to bankruptcy. There is the argument that a bankruptcy adversely affects a person's credit rating, but the reality is that the person going into bankruptcy will have such a bad credit rating that nothing will make it worse. In fact, the person will be a better credit risk after bankruptcy because he or she will have no debt.
WHAT IT COSTS
The payments a debtor makes in the nine months of bankruptcy are set by the government. Trustee fees come out of this amount. In the most common situations, the monthly payments are less than $200 a month for nine months.
Sands says most debtors keep all their assets. In B.C., bankruptcy exemptions include $12,000 in home equity ($9,000 outside Greater Vancouver and Victoria), $4,000 in household items, $5,000 equity in a vehicle (reduced to $2,000 if the debtor is behind on child-care payments), $10,000 in work tools, and essential clothing and medical aids.
Almost all debtors are discharged or out of bankruptcy in nine months, when most debts are erased. Exceptions are fines imposed by a court, money owing for things stolen, things obtained by misrepresentation, alimony or maintenance payments, damages awarded by a court for sexual assault or intentionally inflicting bodily harm, and student loans within 10 years after the completion of studies.
THE TRUSTEE
Some of the duties of the trustee in bankruptcy are to:
- Investigate the financial affairs of the bankrupt.
- Administer the bankruptcy estate to ensure the orderly and fair distribution of property among the creditors.
- Set aside any side deals or fraudulent transactions designed to hide assets from creditors or benefit one ordinary creditor over another.
- Sell any available assets.
- Recommend whether the bankrupt should be discharged. In rare cases, discharge can be withheld if the individual fails to meet his or her obligations outlined above.
REBUILDING CREDIT
Bankruptcy is a black mark on a person's credit rating that stays on your credit bureau report for six to seven years.
However, Sands says a diligent person can rebuild his or her credit rating in as little as two years by following these tips:
- Talk to your banker and say you want to re-establish your credit rating.
- Open a savings account.
- Be a regular and persistent saver.
- Take out a small loan using the savings account as collateral and then pay it back.
- Apply for a credit card with a low limit, and secure the limit by using your savings account as collateral.
- Pay your credit-card balances on time.
Another little-known tip is that a debtor has the right to place a 50-word message on his credit report to explain why he or she declared bankruptcy. |
It doesn't seem all that bad. Could you explain the reality to us? |
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crescent
Joined: 15 Jan 2003
Location: yes.
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| Posted: Thu Mar 27, 2008 9:26 am Post subject: |
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| laogaiguk wrote: |
God, so many artsies (almost always artsies) feel that bankruptcy is just a cake walk and and easy option. One, as Hanson said, it's not as fun as some might think.
Two, no matter how much the banks are making, society can't just pay for all your useless degrees. You chose it, you pay for it. While some people actually do need to declare bankruptcy, it's not some easy out. Work it off. |
Those are the rules they should be changing. Banks should be forced to use profits to pay bankruptcies. I realize ordinary citizens are caught up, but I have a big *beep* you attitude with banks. What kind of logic allows banks to get away with the crap they pull while taxpayers pay for losses.
It is for that reason alone that i would want to do it. I wish every student-debtor in the country did it at once.
The RBC posts record profits yearly, and still hasn't seen fit to refine it's customer service levels to even satisfactory standards.
It is impossible for me to directly wire transfer my loan payments as they ill-advised me to cancel my credit cards in order to be eligible for non residency.
They intermittently mail me my payment records.
They took 9 months to send me a copy of requested missing records.
They deny my requests to stop bothering my family with automated "where's our money" calls if my mailed payment is later than usual. |
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ernie
Joined: 05 Aug 2006
Location: asdfghjk
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| Posted: Thu Mar 27, 2008 6:39 pm Post subject: |
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"D'oh! I thought bankruptcy was the COOL law; the one that says 'Don't worry, I'll take care of it."
-Homer |
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Yu_Bum_suk
Joined: 25 Dec 2004
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| Posted: Thu Mar 27, 2008 7:23 pm Post subject: |
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Yippee! If this goes ahead in four months I could be bankrupt!!!
(my sister's bank acount could see a considerable 5-digit donation, however) |
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livinginkunsan
Joined: 02 Dec 2006
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| Posted: Thu Mar 27, 2008 9:21 pm Post subject: |
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Ahh, now I remember why I don't like most expats I meet. You are all crooks  |
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