Collection Agencies - all from collection company at work - Canada

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Bankruptcy is giving up?!

Postby montyloree » Tue Sep 17, 2013 05:54:57 AM

Bankruptcy is giving up.... it is relatively final...

There are some advantages to bankruptcy... but a lot of disadvantages.

If you declare bankruptcy, then you have to pay the bankruptcy trustee.... so, if you're completely illiquid, that's not really an option.

Bankruptcy will erase most of your debts, and possibly not all of your debts.

You will have the stigma of being bankrupt for the rest of your life..

The nice thing is: for the debts that are 'erased', the creditors will stop calling.

The bad thing is: The debts are still 'live' according to the credit bureau. The creditors just can't collect them. I've witnessed this firsthand.

DEBT SETTLEMENT:
Debt settlement is a good alternative for those who are still making money and can afford to pay something. You don't get the bankruptcy stigma, and you are able to pay back some of the debt that you owe..

After all is said and done, most people are good people.. they want to do the right thing. Paying your debts as agreed is the best thing possible.... paying off part of your debts is the next best thing, and finally paying NO debt because you're bankrupt is the worst thing... this means that you will feel the worst for not paying your debts as agreed.
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RE: Collection Agencies in Canada

Postby Concerned_Canadian » Mon Sep 16, 2013 04:12:45 PM

Here's 2 podcasts produced by Monty, back in 2007 I found in the largest thread on this site..
/threadview/70/4087/107.html

Very informative, and as Angela said. "Knowledge is power" I like the fact that she did not back down from those agents.
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RE: Let's reverse the control pattern here....

Postby Concerned_Canadian » Fri Sep 13, 2013 01:46:02 PM

What about a Consumer Proposal If you don't want to go bankrupt ?

Just so you know I'm not plagiarizing, this is a quote from: http://www.bankruptcy-canada.ca

"If a consumer proposal is a viable option for you, it can be beneficial in the following ways:

"Surplus income" is not a consideration, as it is in bankruptcy. This means that your assets are not at risk, and there is no danger that they may have to be surrendered to the administrator as part of your proposal agreement.

Also, once your proposal is in place, it makes no difference if your income goes up! You will owe nothing more than in the agreed upon terms of the proposal".

I agree with you, Transparency and communication is key, So is preparation and acting fast when your circumstances change...
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RE: Let's reverse the control pattern here....

Postby Concerned_Canadian » Fri Sep 13, 2013 01:40:44 PM

Nobody likes bankruptcy. It basically says, hey I failed. But it does give you a clean slate, and I believe it only stays for 7 years, at least that's what I've been told. Under new rules passed by the government, BUT NOT YET IN FORCE, a second-time bankrupt will be eligible for an automatic discharge in 24 months, provided he/she has no surplus income.

If there is surplus income, the debtor will be eligible for an automatic bankruptcy discharge in 36 months. Long time, and it's not for everyone, but it is another option.

One question I have is, what is the advantage to the creditor receiving a "statement of affairs" ? They can't right it off as a capital loss, they just know you have no money, And a commissioner of oath will confirm it.
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RE: Let's reverse the control pattern here....

Postby montyloree » Fri Sep 13, 2013 01:29:43 PM

There is no law that says you must declare bankruptcy... people do it as a "convenience" or last resort...

omg.. I hate bankruptcy... it stays on your public record forever.... there is stigma to that.... and, especially if you've declared bankruptcy twice... creditors won't go near you after that...

There is debt settlement, which is another option... that is harsh on your credit report, but it falls off after 6 years...

The key here is to be transparent.... credit is built on a trust relationship... if you make yourself opaque to the creditor then they lose trust and send in the hard collections....
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RE: Let's reverse the control pattern here....

Postby Concerned_Canadian » Mon Sep 16, 2013 06:08:31 AM

?
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RE: Let's reverse the control pattern here....

Postby montyloree » Fri Sep 13, 2013 11:47:47 AM

P.S. I've learned a huge amount about human kindness and patience in the last five years... reconciliation is a important...

I'm curious to know what would happen if I interceded with a 'complex collection situation'... as I've done in the past...

If we don't have sufficient funds, should we settle the debt?

Should we just tell them collector to back off, because we're illiquid?

What is the goal here? The goal is to have as pristeen credit report as possible... however it works....

A statement of affairs would be a useful tool for both parties... if it establishes credibly that you're illiquid, then the collector will back off and leave you alone.... bottom line.... they would have no reason to come after you .... collection agencies write off a lot of debt... and they're used to settling for pennies on the dollar... trust me... they've admitted that to me personally on the phone, and I've recorded the call.....

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RE: Let's reverse the control pattern here....

Postby macie43 » Fri Sep 13, 2013 11:50:27 AM

I agree that a "statement of affairs" maybe a useful tool. Trouble is it may give your opponents something to beat you over the head with. I believe that certain debt collectors have advised debtors to put their wives "on the game" to service the debt, so they are probably not beyond pointing out how to make unreasonable economies in a perfectly reasonable "statement of affairs'.

Doing things reasonably is great if both sides are reasonable. That's the way I started out, now I take the hammer to crack a nut approach. One learns from the experiences that life throws at you.

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RE: Let's reverse the control pattern here....

Postby Concerned_Canadian » Fri Sep 13, 2013 10:12:55 AM

How would this "statement of affairs that is verified by a credible party" work ? Is this almost like a co-signer, except it is verifiable with someone in good credit standing with equifax/transunion ? Or would it require a commissioner of oath to validate and verify it ?

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RE: Let's reverse the control pattern here....

Postby montyloree » Fri Sep 13, 2013 10:01:20 AM

Macie... agreed... that is why I want to explore a Statement of Affairs...
This would be a good structure to deal with...

Honestly... if a collection agent would call my wife while she was doing chemo and was disrespectful... I'm not sure how I would handle that...

When people are weak and at a low point in their life... the last thing they want is a disrespectful collection agent...

So.. by developing a statement of affairs that is verified by a credible party... that should help with that potentially painful process....

My personality type is such that I love dealing with collectors... it's fun for me... but, certainly not in a delicate time when i'm having life threatening issues...

Macie.... what do you think of the statement of affairs approach?
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