Student Debt

Examples of Bankruptcies – Students

I was never given advice on how to budget or deal with finances, before long I realized that the debt was so high I was never going to get out of it…

Student Visa Card & Debt

When I started college, in the first couple of days there were people at the school getting you to sign up for a credit card.

I applied for a student Visa, everyone was doing it and it seemed like a very reasonable thing to do.
Credit Card Debt Student
I planned to use it to pay for my books and travel expenses while I was in school. I had a part time job and my parents were paying for my tuition so it wasn’t a problem.

However, once I graduated I could not find work in my field and started applying for more credit to help me get by.

Once I was working I kept using the credit cards, plus a line of credit to pay for unexpected expense like car repairs or I would use them at Christmas time or occasionally to take a vacation.

I was never really given advice on how to budget or deal with finances. Before long I realized that the debt was so high I was never going to get out of it.

Even if I paid the most I could afford every month it would still take me years to pay everything off.

Getting Help with Credit

A friend of mine had a similar financial situation and told me she had filed a Consumer Proposal. I’d never heard of this before, and wanted to learn more about it.

She told me to talk to a Trustee and recommended Kelly Dey at YanchDey.

I called the office, had a brief conversation with Kelly who explained to me how she could help me and invited me to come by the office.

Just that conversation gave me hope that there was a help and a way out of my debt.

Meeting with the Trustee

I had a meeting with Kelly Dey, she was very friendly, open and I felt like I’d had a friendly discussion with a friend.

I was worried they were going to pressure me into doing something, but it was nothing like that.

Kelly explained to me how a consumer proposal worked and how a bankruptcy worked and the pros and cons of both.

She told me to think about it and if I thought either of those would help me to come back and see them.

The next day I called and made an appointment to go back and she her again.

My Debt Free Solution

I decided to file for bankruptcy.

I liked the idea of a proposal, but I wasn’t sure if my current employment was going to be steady enough.

Once I got past the idea of being “bankrupt” it was pretty painless. I met with the Trustee to file all the paperwork.

I didn’t have any real assets other than my car which she explained to me was an asset that I could keep while in bankruptcy.

Once the bankruptcy was filed the creditors stopped calling and sending me collection letters.

I had to do monthly budgets for 7 or 8 months and after 9 months the bankruptcy was over.

It will be on my credit bureau for a few years, but I have already been able to get a credit card with a small limit which is all I need.

I don’t ever want to be under the stress of owing that kind credit card debt again, so I only use the card when I have to.

Going bankrupt wasn’t something I ever thought I would have to do or am necessarily proud of, but it was one of the best things I did.

I actually wish I had done it earlier to avoid the terrible stress I was under from all the bills.

I recommend anyone with financial issues to go and speak with YanchDey, they will help you.

Debbie J. Whitby Ontario

Speak to an Insolvency Trustee

Bankruptcy Trustee Kelly Dey — Kelly Dey Insolvency Trustee

Questions about insolvency and bankruptcy? I invite you to call our office to speak to myself or one of our insolvency trustees.

We’re happy to speak over the phone or in-person at one of our offices.

Where you have questions or need some advice, please feel free to give us a call without cost or obligation.

Call us today at 905-721-7506.

R. Mitchell

6 days ago

★★★★★ Kelly and her staff made the bankruptcy process very easy. It was a relief to my wife and I to have professionals such as these, very supportive. Thanks again

D. Ganguli

2 weeks ago

★★★★★ Some bad financial decisions including being laid off resulted in huge credit cards bills that we were never going to be able to pay off. When we finally got fed up with the collection calls, my husband and I decided to get some help. We decided on bankruptcy giving up many things we didn’t really need, and the counseling was great for us at our age. It wasn’t easy, but we are much happier and debt free. Thanks Again, would recommend.

Jo-anne Lee

1 month ago

★★★★★ I had a student loans of $14,000, and a balance on my credit card, then I received a letter of garnishment. A credit counselor recommended I look into filing for bankruptcy. The bankruptcy trustee was easy to speak with and listened to me. Together we discussed the pros and cons and options available. The bankruptcy will pass, but I’m much happier without the burden of debt in my life. I should have gotten the financial counseling years ago.

Christia McIntyre

4 weeks ago

★★★★★ Professional and friendly, on their advice I did a consumer proposal vs bankruptcy and will be completely out of debt in 2.5 years!! Many thanks

S. Lee

1 month ago

★★★★★ They were completely upfront about what my options were, and gave me a clear cut plan about how I could stop the calls, bill collectors and bills that just kept getting bigger and bigger. Filing for bankruptcy was not an easy decision but the trustee was there for me all the way. Thanks Again!

What happens when you declare bankruptcy in Ontario?

A: When you declare bankruptcy in Ontario, you will be required to surrender any non-exempt assets to a Licensed Insolvency Trustee (LIT) who will sell them to pay off your debts.

Your creditors will be notified and instructed to stop all collection actions against you. You will also be required to attend credit counselling sessions and make regular payments to the LIT.

Once the bankruptcy process is complete, you will be eligible for a discharge from your debts, which means you will no longer be responsible for paying them off.

Who qualifies for bankruptcy in Ontario?

A: To qualify for bankruptcy in Ontario, you must owe at least $1,000 in unsecured debts and be unable to pay them back.

You must reside in Canada or the majority of your assets are held in Canada. Additionally, you cannot have filed for bankruptcy within the past seven years.

How long is bankruptcy process in Ontario?

A: The length of a first-time bankruptcy in Ontario is typically nine months. However, if your income is above a certain threshold, you may be required to make additional payments for a longer period of time.

It is important to note that bankruptcy should be considered as a last resort option. There are alternative debt relief options available, such as consumer proposals, debt consolidation, and credit counselling. It is recommended to seek the advice of a Licensed Insolvency Trustee to determine the best option for your individual financial situation.

How much does it cost to go bankrupt in Ontario?

A: The cost of filing for bankruptcy in Ontario can vary depending on your individual circumstances. However, the fee for filing bankruptcy is typically $1,800.

What do you lose if you declare bankruptcy in Canada?

A: When you declare bankruptcy in Canada, you may be required to surrender any non-exempt assets to a Licensed Insolvency Trustee (LIT), who will sell them to pay off your debts.

This may include your home, car, and other valuable assets. You may also lose your credit cards and be unable to obtain credit for several years. Most personal items you keep, cars under 10,000 dollars, tools of the trade. Give us a call and we can tell you in more detail.

What debts survive bankruptcy?

A: Some debts are not discharged by bankruptcy, including student loans that are less than seven years old, fines, court-ordered restitution, and child support payments.

Can I keep my car if I declare bankruptcy?

A: Whether or not you can keep your car when you declare bankruptcy depends on the value of the car and the amount of equity you have in it.

If the equity in your car is less than the exemption limit, you may be able to keep it.

How much do you pay monthly for bankruptcies?

A: The amount you pay monthly for bankruptcy depends on your income and expenses.

You will be required to make regular payments to a Licensed Insolvency Trustee (LIT) during the bankruptcy process, which will be used to pay your creditors.

Can you buy a house after bankruptcy Ontario?

A: Yes, it is possible to buy a house after bankruptcy in Ontario.

However, it may be more difficult to obtain a mortgage and you may be required to pay a higher interest rate. Many people work on rebuilding their assets and credit rating for a while before considering a home purchase.

What happens 12 months after bankruptcy?

A: After 12 months, you may be eligible for a discharge from your debts, which means you will no longer be responsible for paying them off. You’ll be able to start fresh to rebuild your credit and financial health.

However, certain debts may survive bankruptcy, such as fines or debts resulting from fraud.

What happens 5 years after bankruptcy?

A: After five years, your bankruptcy will be removed from your credit report and you may be eligible for better credit options.

However, bankruptcy can remain on your record for up to seven years, which may affect your ability to obtain credit or employment.