Bankruptcy question

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Troll_Handle
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Re: Bankruptcy question

Post by Troll_Handle » Tue Feb 13, 2018 8:51 pm

When the issue is largely the accumulation of interest, a consolidated loan or consumer proposal will often work out well. They may not need to go bankrupt.

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Scrubb
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Re: Bankruptcy question

Post by Scrubb » Wed Feb 14, 2018 1:51 am

Yes, it seems likely that the consumer proposal will be the way to go. I doubt they could get a consolidated loan - they had one a few years ago, and paid it back on time, but this time it's a LOT more money and I doubt the bank would think they're a good risk.
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Re: Bankruptcy question

Post by Scrubb » Wed Mar 14, 2018 5:40 pm

Minor update:

These 'friends' are my brother and his (ex) wife. They're formally separating their assets and debts so that they can decide independently what each one is going to do.

My brother is getting the house, so bankruptcy doesn't work for him as there's a rule about how much equity you're allowed to have and he's over the limit. He got the entire loan to me on his side of the column, so I'm letting him delay payments to me until he gets rid of his other high-interest debt. He is actually asking me to help him budget, and has agreed to send me his bank statements and payment records every month to help keep him on track. I have reasonably high hopes that he'll actually manage to follow the budget, and I'll see my money in the long run.

She's planning to declare bankruptcy as soon as her name is off the mortgage.
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northern_goddess
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Re: Bankruptcy question

Post by northern_goddess » Wed Mar 14, 2018 8:47 pm

Glad to hear your brother is taking control of his life and asking you for constructive help.
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Re: Bankruptcy question

Post by Scrubb » Wed Mar 14, 2018 9:24 pm

Yeah, me too.

So far I've had to repeat over and over again that his first priority has to be saving up enough money to survive the summer, when he has no paycheque (he's a teacher). He cannot fall back on using credit again.
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DianaHaddad
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Re: Bankruptcy question

Post by DianaHaddad » Wed Mar 14, 2018 10:10 pm

...
"Suck it, Trebek."

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Wilster
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Re: Bankruptcy question

Post by Wilster » Thu Mar 15, 2018 2:14 am

Scrubb wrote:
Wed Mar 14, 2018 9:24 pm
Yeah, me too.

So far I've had to repeat over and over again that his first priority has to be saving up enough money to survive the summer, when he has no paycheque (he's a teacher). He cannot fall back on using credit again.
Ava can confirm, but at least in the States, you can have your annual teacher salary spread out over 12 months instead of just when you are working i.e. maybe better as an option for your brother for budgeting purposes.
Scrubb makes note of my Stew and Thorn Tree posting history: I had no issues with what you said, the problem was that I couldn't figure out what it was (you said).

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Re: Bankruptcy question

Post by Scrubb » Thu Mar 15, 2018 3:00 am

Wilster - they used to allow that here, and he did it, and it helped - but they won't do it anymore.
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DianaHaddad
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Re: Bankruptcy question

Post by DianaHaddad » Thu Mar 15, 2018 3:49 am

Do they let him split the accounts that his paycheck is deposited into? He could get the difference from the 1/12th to 1/10th change deposited into a savings account automatically and have it waiting for him in June. If it was hard for him to resist, he could even get it sent to someone (you?) who would hold it safe and release it to him when the time came.
"Suck it, Trebek."

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Re: Bankruptcy question

Post by Scrubb » Thu Mar 15, 2018 4:27 am

That's kind of what I'm making him do, Diana. I made up a spreadsheet that tells him exactly how much he has to put away every month and he's going to move it into a separate account (that doens't have a debit card attached to it), and then send me the statements every month to prove it's in there. He's also going to send me the statements from his Line of Credit as he pays it off, showing that he paid the amount his budget told him to. He volunteered to send me the statements, knowing it would help him stick to his plan.

I'm really hoping that in a few months when he's actually got some money in the bank (for the first time EVER) and he's also finally seeing his debt go down, that he feels good enough about it that it motivates him to stick with the plan.
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DianaHaddad
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Re: Bankruptcy question

Post by DianaHaddad » Thu Mar 15, 2018 4:30 am

Sounds like a great plan. I'm sure he'll sleep a lot better once he has made a bit of progress.
"Suck it, Trebek."

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Re: Bankruptcy question

Post by veronica_inheels » Thu Mar 15, 2018 4:56 am

Ar they going for the highest/best bankruptcy option? I hope they aren't feeling any moral nonsense about it and really taking themselves to the cleaners.

As to the steps your brother is taking , quite frankly I am bewildered that an educated older man needs something akin to AA regime to stay on track. And actually needs someone to look at his bills and hold his hand. This Is learned helplessness. Because it is not a lack of skills of 1+1=2. He wants to unload it on someone's else. Weird dynamics, first btw husband and wife, and. Now btw sis and bro. I understand that you feel helpful, maybe even chosen as the one smart with money, but ffs he needs a kick in the ass.
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shilgia
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Re: Bankruptcy question

Post by shilgia » Thu Mar 15, 2018 12:48 pm

Sounds like a great plan, Scrubb.

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