I had my meeting with the bankruptcy trustee yesterday and have been mulling things over..
Other pertinent information: When I got divorced I was involved in a bankruptcy from our business when it dissolved. So this would count as a second strike for me.
I have two options.
2.) Bankruptcy: For the next 3 years, every dime I make over $2300 a month would go to the courts to disperse towards my lenders, including the house, car, etc. This put my credit at r9, which I really could care less about - I've found cash only is a delightful way to live. Furthermore, no tax returns, no child tax benefit, nothing would be allowed to be paid to me - it all goes right to the courts. After 3 years, there would be a hearing and a judge would decide if the payments went on another 3 years or if they bankruptcy would be discharged.
2.) Consumer Proposal: A certain amount of money would be offered as a monthly payment for the next 5 years. The number we came up with was $400 a month. That money would be dispersed among the lenders for the next 5 years and could be paid off early at any time. Additional money made (for example, a raise, a tax return, etc) would be allowed to be kept, but a record of spending has to be given to the trustee once a month for the first 6 months, every 3 months, then every 6 months, for the time of the proposal. They expect to see savings, accounts set up, etc., for any type of spending required, such as a fund for tuition for my daughter, a fund for sports for another child, a fund for the car, etc. They can't mandate amounts - they can just bug you about it. With this my credit would be an r7 - still so deep in the toilet as to be residing in the sewer system.
I'm definitely leaning towards option 2 as it seems a more viable way to build a new financial life, while still satisfying some debt voluntarily. As I've written, I feel horrible about the situation I've gottn myself into and I want to take steps towards doing what I can to make things right - or right-er.
When we did the calculations, if my income remains the same as it is now, the amounts paid back would be similar, with the Option 2 payback being slightly higher but more affordable.
OTHER INFORMATION
There is no interest charged for either option.
The payments to the trustee for her services comes from payments made to the courts.
The creditors are not allowed to contact me or take any further actions against me, in either situation.
What do you all think of this? Has anyone had this experience?
PS: If I ever try to borrow money to start another business please kick me sharply in the BUTT.
Other pertinent information: When I got divorced I was involved in a bankruptcy from our business when it dissolved. So this would count as a second strike for me.
I have two options.
2.) Bankruptcy: For the next 3 years, every dime I make over $2300 a month would go to the courts to disperse towards my lenders, including the house, car, etc. This put my credit at r9, which I really could care less about - I've found cash only is a delightful way to live. Furthermore, no tax returns, no child tax benefit, nothing would be allowed to be paid to me - it all goes right to the courts. After 3 years, there would be a hearing and a judge would decide if the payments went on another 3 years or if they bankruptcy would be discharged.
2.) Consumer Proposal: A certain amount of money would be offered as a monthly payment for the next 5 years. The number we came up with was $400 a month. That money would be dispersed among the lenders for the next 5 years and could be paid off early at any time. Additional money made (for example, a raise, a tax return, etc) would be allowed to be kept, but a record of spending has to be given to the trustee once a month for the first 6 months, every 3 months, then every 6 months, for the time of the proposal. They expect to see savings, accounts set up, etc., for any type of spending required, such as a fund for tuition for my daughter, a fund for sports for another child, a fund for the car, etc. They can't mandate amounts - they can just bug you about it. With this my credit would be an r7 - still so deep in the toilet as to be residing in the sewer system.
I'm definitely leaning towards option 2 as it seems a more viable way to build a new financial life, while still satisfying some debt voluntarily. As I've written, I feel horrible about the situation I've gottn myself into and I want to take steps towards doing what I can to make things right - or right-er.
When we did the calculations, if my income remains the same as it is now, the amounts paid back would be similar, with the Option 2 payback being slightly higher but more affordable.
OTHER INFORMATION
There is no interest charged for either option.
The payments to the trustee for her services comes from payments made to the courts.
The creditors are not allowed to contact me or take any further actions against me, in either situation.
What do you all think of this? Has anyone had this experience?
PS: If I ever try to borrow money to start another business please kick me sharply in the BUTT.