indebted2debt

I made my bed, and now I must lie in it!

Archive for the tag “bankruptcy”

Gah!

So I met with the advisor and have been stressed ever since that meeting. I left there feeling even more down in the dumps than I had felt before. Maybe it’s a “you’re going to feel worse before you feel better” kinda thing but either way it sucked. I got into my car and could literally have cried for days but the tears never came.

What came was PANIC. How the fuck am I gonna do this?

The advisor was amazing! I’m not sure what I thought might happen in there. Maybe judgement? There was none of that at all. There was actually sympathy! She compared 2 scenarios to me, I guess the only 2 that made sense in my situation. Since I had done a lot of research I knew a lot of info before going in, but what I wasn’t sure on what the calculations! Well ladies and gentlemen, now I know! LOL!

She had to compare bankruptcy to consumer proposal since you need to offer more money in a consumer proposal than you would repay in a bankruptcy. I did not know that! So basically, after giving her all my salary and debt info she figured out that I would have to pay around $18,000 (or $360.00/month) for a bankruptcy, and therefore would have to at least offer $20,000.00 for a consumer proposal. (which is $350/month) You repay that monthly amount for 5 years.

The bad news? Each is almost just as bad on your credit score. Bankruptcy is a R9 and a consumer proposal is a R7.

At this point I’m paying $720/month on my debt. If I were to do a consumer proposal (I’ve decided against bankruptcy) that means my debt is cut in half.

Pros? My debt is cut in half!

Cons? I have no credit, and will not have any for 5+ years.

My question to myself is, can I do this myself? If I get a better paying job, I could very well bring in $300.00-$400.00 more a month that could be put on my debt.

I need advice. I need tips. I’ve been reading a lot about Dave Ramsey and actually reserved his book at the library (The Total Money Makeover). A quote I read of his makes perfect sense: “If you will live like┬áno one else, later you can live like no one else.”

It makes perfect sense, and that is my goal!

Stressed!

So I’m feeling kinda stressed lately with my debt. I mean, I’m always stressed about it but lately it’s been hard. I don’t see the light at the end of the tunnel. We’re barely making ends meet, and that’s us just paying the minimums which is all we can afford to pay. The only way that we’ll be able to pay more is if I work 7 days a week or I get a better paying job. Even then I’ll only be bringing in an extra $300-$400 extra. I’m not sure what to do but I think I need to sit down with a financial advisor and discuss options. It’s not manageable anymore and it seems to be getting worse. The last thing I want is to file bankruptcy and I know there are other options besides that so I need to look into what they are. Most of all, I see how this is affecting my health, stress wise I’m probably at my worst. I mean, it’s almost 3 o’clock in the fucking morning and I’m still awake!

Anyhow, I wish I had an update that was good news, but quite frankly our financial situation is quite grim. My bank account is actually in overdraft until payday which is 2 weeks from now . Lovely!

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