Bankruptcy seems to be the only option...

[Canadia 0]

I've gathered piles of debt over basic stupidity that since I don't have a Job I can't pay back right now...my DH (who has nothing to do with any of it) can't help pay it back he doesn't make enough.....does anyone know of a way to file Canadian bankruptcy from the us......I just don't know what to do....I changed my address to the us when I moved for school in 2007 and me and DH rent a room in the basement of the Inlaws ....and now collections have called my in laws house number instead of mine....I don't want the inlaws to know about my debt.....its so humiliating....plus I don't live at the inlaws I live in the basement apartment......I've tried to firgureout ways to start paying my debt back but now that I have a baby on the way it just seems impossible.....if anybody has any advice I'd love to here it !

Thanks

[Sprailenes 47]

Filing for bankruptcy is a terrible terrible idea and its not cheap to do...go figure.

For 7 years you basically can't own anything, and when you finally decide to go get a car, even after the seven years they take into account that you have filed for bankruptcy. Its something that follows you through the rest of your life.

Sometimes you can negotiate with the people you had the bills with originally to come up with an easy payment plan. But now if you're in the bad with collections I don't know what to do.

You could talk to a bank to consolidate but if you miss a payment with them you'll be in even deeper poop.

Edited March 24, 2008 by Sprailenes

[Canadia 0]

I'm already in collections....I have no way of paying right now....I spoke to a Canadian bankruptcy lawyer sent him my info online and he said that when I come back to Canada to file....I dont plan on going back for an extended period of time anytime soon

I was told my him not to negotiate on the phone and since I have nothing to negotiate with it doesn't make much difference.....god the stress of this all if killing me....I just feel like I screwed myself over.....

[thermophile 0]

talk to a credit counselor. Many organizations offer counseling for free-check your yellowpages and you'll find plenty. Even if they can't directly help since your credit issues are in Canada, they should be able to give you good advice and help you figure out how to manage money. They may even be able to put you in contact with a good credit agency in Canada to help you work out payments. Your creditors will probably be willing to work with you because they lose too if you file for bankruptcy-not as much as you-especially if you show good faith turning your finical life around

[Chica Yeyé 41]

talk to a credit counselor. Many organizations offer counseling for free-check your yellowpages and you'll find plenty. Even if they can't directly help since your credit issues are in Canada, they should be able to give you good advice and help you figure out how to manage money. They may even be able to put you in contact with a good credit agency in Canada to help you work out payments. Your creditors will probably be willing to work with you because they lose too if you file for bankruptcy-not as much as you-especially if you show good faith turning your finical life around

Just be careful with those MoFos. Not all credit counseling agencies are legit. I can imagine that being in collections is uncomfortable and even creepy as helll; but do not avoid them. Call your creditors (NOT the collection agencies) and explain the situation- you will be surprised at how willing they are to negotiate with someone who is willing to pay, even if little. 5 bucks is 5 bucks. Take a second job: is that an option? Sell some stuff on e-bay?

[thermophile 0]

oh yeah sorry, I meant the counseling arms of legit organizations like YMCA or a local credit union. Not the late night infomercial "pay pennies on the dollar" bs. if it sounds too good to be true it probably is.

check what our friend google found for us:

http://www.ftc.gov/bcp/conline/pubs/credit/fiscal.shtm

[Canadia 0]

talk to a credit counselor. Many organizations offer counseling for free-check your yellowpages and you'll find plenty. Even if they can't directly help since your credit issues are in Canada, they should be able to give you good advice and help you figure out how to manage money. They may even be able to put you in contact with a good credit agency in Canada to help you work out payments. Your creditors will probably be willing to work with you because they lose too if you file for bankruptcy-not as much as you-especially if you show good faith turning your finical life around

Just be careful with those MoFos. Not all credit counseling agencies are legit. I can imagine that being in collections is uncomfortable and even creepy as helll; but do not avoid them. Call your creditors (NOT the collection agencies) and explain the situation- you will be surprised at how willing they are to negotiate with someone who is willing to pay, even if little. 5 bucks is 5 bucks. Take a second job: is that an option? Sell some stuff on e-bay?

Can't get a first job thats the issue we just filed AOS...I'm pregnant and we figure by the time my EAD goes through I'll be 7 months along...so I don't know if anyone will hire me when I'm 7 mths or if it will be worth it.......I don't want to go bankrupt and living in the US I don't think I can.....I feel so silly b/c I have nothing to show for my debt it was all accumulated in flights and the rest was paid back I should have done it differently but I didn't and it was a mistake.....the stupid things you do when you fall in love....hmmm

[Sprailenes 47]

I am not trying to get too personal here but how in debt are you right now? A lot or a little?

'

Can your husband help you with your bills at all?

Edited March 24, 2008 by Sprailenes

[MrsCat 6]

Canadia,

First, I would encourage you to visit with a debt specialist/credit counsellor. Have all of your paper work with you, and go over every last outstanding bill. If you have any bills not yet in collection bring them with you too. You need to see how much money you actually owe. Obviously you need an established credit counsellor (not the ones you see on TV). They are the best line to the credit industry and knowing what kind of payment plan the companies are willing to accept.

If this isn't possible, given the debt is in Canada and you're in the US, you MUST call the creditors yourself. Do not call the collection agencies, they really only know how to ask for total collection. They are usually not in a position to negotiate the debt. You can ask to consolidate (may no longer be an option), you can ask to start a small payment plan. Remember that you have control in this, not the other way around. These are the companies that gave you credit in the first place. They wanted your business then, and they kinda want it now. Remember that these companies know what the last step is, if you cannot negotiate something reasonable - BANKRUPTCY. This is something that you both want to avoid. While you will suffer for the next few years if this is a step you take, these businesses ultimately suffer because it washes your debt clean (unless its a student loan). They want to negotiate. They don't want to you file for the B word. But you have to call them. As unfortunate as it sounds to be hounded, you have to give them your actual number - but once you start making payments (even small ones), they will slow or stop calling.

I can only imagine how uncomfortable it would be to have your new in-laws being called.

If you haven't done so already, you need to talk with your husband. You both need to be on the same page. I understand that this is a debt that you accrued while living apart, but now this is a stress that is weighing on your marriage. You need to review your spending together and see where you can come up with money to help pay down your debt. I know you said he is unable to assist, but sometimes even discussing finances and spending habits together can help come up with a plan.

As everyone else has said - bankruptcy should be your last option. There is a reason that people speak of it so harshly. It's not a quick fix. Think of it in these terms - you need a new car to transport you baby, you need a car seat, and baby furniture. You don't have all the money for these things so you need a credit card or a loan - it will be a 99.9% likelihood of a NO. Bankruptcy ruins your credit score, and will restrict those things you hope for your future. Only approach this route if your advisor cannot come up with any other options.

Lastly, as a fellow Canadian, I was unsure about the differences between Canadian and American finances (ex: debts, buying car/house, retirement, savings). I wanted to learn about these things so I got Suze Orman's Young, Fabulous and Broke. Her understanding of debts, savings and planning has been invaluable. It really put spending and saving into perspective. As she writes: "broke is paying you rent with a cash advance from your credit card."

Things aren't hopeless, even though they feel that way. You have options. You just need to realize what they are.

[Canadia 0]

Thanks everyone for the replies...I think I got some of the input I was looking for.

[J&K 0]

Just remember, the laws regarding Canadian collections and US collections are completely different.

So if you're thinking of going to a credit counsellor you're better off talking to one from your orginal province.

I had found the laws for Ontario, so if you're from there I can post them for you.

Also, your credit up in Canada will not follow you down here. So remember, you can start fresh.

I would also bite the bullet and get copies of your credit reports. This way you'll be able to tell who you owe, and what collection agencies might be reporting. The funny thing is, while bankruptcy may hurt your credit score, paying a collection agency off hurts just as much as NOT paying it off.

Just because you get a PAID notation beside a collection account....it is STILL a collection account and comes in to play in your FICO score as bad.

And STAY OFF THE PHONE with the collection agency. They will use any tactic necessary in order to get you to pay them. Deal only in writing with them. You can send them a limited Cease and Desist letter, basically telling them to only deal with you in writing, that you will not tolerate phone calls to either your place of residence, or work.

I hope this gives you a little more help!

[Sylvia_n_Joseph 3]

Filing for bankruptcy follows you a long time. Even though your credit for things like card and cars it is fairly short term other places will ask if you EVER filed for bankruptcy. You will have a harder time buying a house or getting certain jobs. Also getting educational loans will be harder.

[CBR 0]

Just offering an opposing opinion here. Filing bankruptcy is not necessarily the end of the world. What's been said above is not necessarily true either. I have read on the web and know personally several people who have been successful buying a car and/or a house 1-2 years following a bankruptcy and getting fairly competitive rates.

It doesn't sound like you're going to be ready to run out and buy a house or car tomorrow anyway. If you were to file a bankruptcy now, chapter 7 would probably work for you since you're not working (debts discharged)(in a chapter 13 you are put on a repayment plan), you start out fresh. Are you planning on working after the baby? You're going to need to rebuild your credit any way you look at it. Bankruptcy actually gives you a fresh start whereas trying to pay back loans and credit that you're drowning in with no income is pretty much impossible and you're going to flounder for a long long time. After bankruptcy you start saving and in 2 years buying a house will be no problem. Not sure about buying a car...you may have to pay some higher interest rates, but you're gonna with ####### credit anyway.

You should start with credit counseling like everyone has suggested and it is a requirement before filing bankruptcy anyway. They can tell you what your options are. If they tell you bankruptcy is the way to go then hold your head up and remember that many other people have survived it. It is pretty humiliating, but it gives you a chance to start over and you learn from your past mistakes.

I'd also check into it to make sure that you can file independently of your husband. If his credit stays fine and he's the only one working anyway your future purchases can go through his name.

Good luck!!

[Udella&Wiz 325]

I tend to agree with the poster above, my best friend and her husband had no choice but to file for Bankruptcy a few years back. He had lost his job, they were in debt and not managing it...but hey, we all make mistakes. They were only renting then so it wasn't like their home was taken away and they had 2 kids.

The immediate relief they got from not being hounded for stuff they tried to pay, but couldn't was helpful. They were juggling and alternating bills by then and it was just a mess. Of course, once they could only pay cash, it was much simpler...albeit they didn't have those huge payments they were trying to make each month, so it actually seemed like they had more money in the end. After a year, they were able to get something like a Zellar's card with a low limit that she miticulously paid off each month, they saved a little and bought a house after 5 years...yes, it seems contradictory, but it worked out.

Anyway - I would be curious .....will Canadia's bad credit really affect her at all here? We've all been through trying to get added to bank accounts and open our own CC without a US credit history...perhaps declaring Canadian bankruptcy will not be a bad thing for her future US endeavors?

[J&K 0]

Anyway - I would be curious .....will Canadia's bad credit really affect her at all here? We've all been through trying to get added to bank accounts and open our own CC without a US credit history...perhaps declaring Canadian bankruptcy will not be a bad thing for her future US endeavors?

No it won't. Her credit file will not be accessible by US creditors down here, unless she specifically wants them to look at it, in which case she would have to give them her SIN.

So, filing Canadian bankruptcy would not necessarily be a bad thing, as long as there are no plans on returning any time soon.

And I agree with what others have said. Filing bankruptcy isn't the end of the world. You can get a home, a car, credit if you have file bankruptcy in the past...and if CAN come off of your credit reports.

As I have stated in other posts about credit...become familiar with your rights down here...YOU HAVE MANY regarding your credit. In Canada I didn't think twice about it...down here, you need it to survive.

If anyone is interested in some good discussion about US Credit PM me and I'll send you a link to another forum which has helped me repair and rebuild my Hubby's credit, and help to establish mine.

And Good Luck to Canadia, whatever path you choose