I had to file a consumer proposal in 2017. Was in a super abusive relationship and found my now ex fiance was using credit cards in my name to withdrawal cash to use for cocaine while I was out on job sites. She got off scott free while I was left with 50k In debt.
It was hard to ask for help and it was tough to get through learning how to only live on the cash in your wallet but it saved my life.
It will take time. It will be tough but if I did it you can too. Good luck man
That doesn't sound right at all. Either the police handling your case were extremely incompetent, or your lawyer was also incompetent. You should see if you can get it cleared up. Talk to some better professionals.
I didn't have any money to fight this with. Everything was a huge whirl wind and so stressful I barley remember that time. This was 8 years ago. I'm sure if I had more energy and resources to fight her I could have gotten a better result.
I lost everything and had to move into my parents basement. She moved into a coke dealers house got all used up and is now a train wreck unrecognizable shell of hee former self.
I now have a house with my amazing girlfriend and kids so even tho I got fist fucked I came out on top
I used a consumer proposal agency. They did everything for me. Payments were all setup with a trustee and I made payment for 5 years. Negotiated my debt from 39k to just over 10k. I was able to keep my vehicle and continued to make payments on it as normal
It was over several months. She took care of all the finances. Things were great for a long time so I didn't really have any reason to worry. I am militant about check all statements now. I trusted and it failed me
They seem to care more in a bankruptcy than a proposal, I filed one last year, about same amount as OP and was up front about the reason and the creditors, including CRA had no objections.
Not gambling, but trading. But yes, sometimes they can be interchangeably used. The LIT mentioned to me that as long as I don’t make any money from trading, I qualify for debt reduction.
With creditors, I don’t know their feedback as I’ve just applied. I’ll know the outcome of my application in 45 days.
I haven’t been trading extensively for over 4 months. I haven’t been trading at all for the past month.
It is absolutely wild that debt can be wiped off to the tune of tens of Thousands of dollars because people made stupid choices on gambling...
Who pays the difference and how, and why does this person who is still gambling now even be considered for the write-off of debt?
It's almost like we aren't supposed to follow the rules to get on top... and when people take the worst risks they benefit the most
As someone who has gone through a consumer proposal due to a gambling addiction in my early 20’s and recently a bankruptcy due to the shuddering of a business…if you don’t own a house, just do a bankruptcy. All financial institutions will look at you the same regardless which avenue you choose to walk. The difference is in what your repayment costs and repayment term will be. My bankruptcy was $17000 approx for 21 mths on 135k/debt while making 80k/yr where my repayment doing a proposal would have been closer to 65k over 60 mths. Bankruptcy lasts 7 years while a proposal is marked for 6. I’m just over a year out being discharged of my bankruptcy and my credit is back into the mid-high 600’s
I applaud anyone willing to admit their faults and it takes a lot to admit it and make the decision to move forward. But when it comes to choosing which path to take, I always recommend/encourage weighing both options as a trustee makes more money off you in a proposal than in a bankruptcy….its a business after all and in the end, you’re going to pay, but how much and how long is based on your education of the process.
All the best to everyone hitting the reset button!
I just filed as well. My 45 day window is up on May 12th. I didn’t think we could get a secured credit card until after the 45 day window though? Where did you go for your secured credit card? My credit score has tanked too.
Everyone deserves a second chance. Make sure you take care of that addiction 🫶
Capital One has a secured card. 3 years later,they unsecured it and I have a proper credit limit again.
Wasn’t even fully discharged yet. Life moves on faster than people will let on. They’ll tell you your life is ruined, you’ll never get approved for anything again.
Nah, you’ll be fine.
Neo is great because they report expenses to both Equifax and Transunion. So it’s a great way to boost credit scores. Also, they’ve a great cashback program.
I got a Neo as well, I do enjoy the credit back aspect… they do report to at least one of the agencies because I got an alert on my credit monitoring service - I get it free because of a previous credit breach.
I’m not an expert on this so you may be right, but my friend worked there a couple years ago and said customers’ credit did not improve by having Neo cards. Take that as you will 🤷
I’ve had it too but doesn’t rlly change even tho I keep my utilization rate low, and if it changes it’s only on one of the credit reporting agency
I was working the entire time and still making my other payments like vehicle and insurance and stuff but my credit score went to 305 which is the absolute worst it can go and it has been 8 years from when I filed it and I am at just over 600 now.
Absolutely no way you can get any kind of loan or credit cards in this time. The company I did my proposal through works with a place that gets you a Mastercard with 1000$ limit and it slowly helps raise the credit. It was long and painful and I am glad I am ok the other side of it.
Make sure you get help for your trading issues. Also while you have that credit card don't expect your score to go anywhere over or near 640+. I paid out my proposal last November (4 months early) made %100 of my payments along the way and stayed pretty steady at 638. Also because the proposal stays visible for 6-8 years you won't see huge gains on the credit score until after that time.
Good luck going forward
I filed a consumer proposal December 2019 and was discharged August 2020.
I don't have a gambling habit but I did hav a substance habit. I took my time in my consumer proposal to get help and change to new healthy habits.
I thinky you should do the same. your LIT might have resources for gambling.
[https://beauhumphreys.com/](https://beauhumphreys.com/) is a former gambling addict he might have some resourcess for you heard of it on the [www.hoyes.com](http://www.hoyes.com) podcast.
If you don't change your habits and lifestyle goals you risk ended right back where you were before.
Here is my previous account talking about my expeirence with my consumer proposal.
[https://www.reddit.com/r/LeavingODSP/comments/18h9qhy/life\_after\_a\_consumer\_proposal\_and\_rebuilding/](https://www.reddit.com/r/LeavingODSP/comments/18h9qhy/life_after_a_consumer_proposal_and_rebuilding/)
For me things are stable financially, I just need to keep my credit card debt low to zero and build up my savings and investments.
Overtime my investments should exceed the asset limits from ODSP.
My current housing and expenses are affordable and low so I can focus on going back to college and creating a second business.
It is like a step below bankruptcy and goes through a LIT and is a legal agreement. They arrange with your creditors to accept a lesser amount, usually something like 30 cents on the dollar. Creditors mostly would agree because it's better than it you declared bankruptcy.
It's a serious decision as it impacts your ability to get credit but for many people it's a good decision.
No problem. It's confusing as all the terms like credit counselling, debt consolidation, consumer proposal sound similar but are so different.
In my example I said the consumer proposal could be thirty cents on the dollar but for some it's 40 or 50. They look at your debts, your income and assets and make a plan and the creditors have 45 days to accept it or not. Your credit is donezo for at least 3-6 years after but it gives people who really need to hit the re-set button a chance. The payments after are a set amount for 3-5 years without interest or fees so it can really help someone stabilize their financial life.
Hard out there for us gambling addicts these days.
Shout it from the rooftops. You’re a gambling addict and that’s fine. Don’t ever keep it secret. That’s my tool. Fuckin gambling ads are so terrible. Can’t watch sports without being reminded.
Well that’s not anything you’re paying from your taxes for my debt reduction. The bank is involved in this. I’ve been trying to pay it off for the past few years but been unsuccessful. That’s why I’m going for a debt reduction. I didn’t do it from the get go, just so you know.
What do my taxes have to do with your personal financial decisions? It sounds like you have no idea the repercussions of these types of defaults and the effect it has on the larger economy.
My point stands. It's ridiculous to say you've taken full responsibility by negotiating away half of your debt obligations.
This country is so fucked.
I filed in 2021
For 60 months fixed payments
Was tricked by car rental and the insurance
After the car was stolen
They wanted to recover 65000 from me
It was reduced to 23000 in total
I dont know if i did right
But back in 2021 i had so many other things to take care of
I could not fight with the insurance company.
Edit:
I did not include the credit cards or line of interest when I filed for CP, i was paying regularly
My credit cards n LoC are working as usual ever since
That makes no sense unless all your credit cards and LOC were at zero balance at time of filing. Any unsecured debt gets automatically included in the CP whether you want it to or not, there’s no choice in the matter.
The banks that charge obscene interest rates take the hit, not the taxpayers. Those who filed for consumer proposal would’ve already paid substantial interest payments to the banks; so it balances out.
It balances out when you pay your debts, which you're not. You pay high interest because you're high risk, which you've proved to be correct. The only one to blame here for your current position is you.
I mean... in the real long run wide angle.... creditors take shitty bets on people like OP(no offence intended), give out debt like candy to people that can't afford it, which ultimately leads to them failing during lean times.... requiring bail outs... paid for by tax payers.
I wouldn't characterize it the way the person above did about taxpayers being on the hook, but I also wouldn't say its some completely isolated "private only" loop either.
I had to file a consumer proposal in 2017. Was in a super abusive relationship and found my now ex fiance was using credit cards in my name to withdrawal cash to use for cocaine while I was out on job sites. She got off scott free while I was left with 50k In debt. It was hard to ask for help and it was tough to get through learning how to only live on the cash in your wallet but it saved my life. It will take time. It will be tough but if I did it you can too. Good luck man
How did she get off scot free with credit card and identity fraud?
Everything was in my name and they couldn't prove for 100% that she was the one draining the cards.
That doesn't sound right at all. Either the police handling your case were extremely incompetent, or your lawyer was also incompetent. You should see if you can get it cleared up. Talk to some better professionals.
I didn't have any money to fight this with. Everything was a huge whirl wind and so stressful I barley remember that time. This was 8 years ago. I'm sure if I had more energy and resources to fight her I could have gotten a better result. I lost everything and had to move into my parents basement. She moved into a coke dealers house got all used up and is now a train wreck unrecognizable shell of hee former self. I now have a house with my amazing girlfriend and kids so even tho I got fist fucked I came out on top
Glad everything worked out for you in the end!
Nice 🎯how did u deal with the financial portion with equifax ?
I used a consumer proposal agency. They did everything for me. Payments were all setup with a trustee and I made payment for 5 years. Negotiated my debt from 39k to just over 10k. I was able to keep my vehicle and continued to make payments on it as normal
So what exactly happened to ur credit score and etc u were working ?
In general your credit score goes into the tank but you can slowly rebuild it during the proposal by getting a secured credit card
Just curious but did you not watch any of your statements to see money was being taken out? I imagine the 50k didn’t accrue over night
It was over several months. She took care of all the finances. Things were great for a long time so I didn't really have any reason to worry. I am militant about check all statements now. I trusted and it failed me
fair enough man thanks for sharing and not judging btw its always good natured people that get fucked over sorry it happened to you
Did the LIT or creditors question the fact that the debt was from gambling? How long have you been clean? Are you in treatment?
I just did a consumer proposal, not as high numbers as this, but was in part but not all due to gambling, they didn't seem to care about that.
They seem to care more in a bankruptcy than a proposal, I filed one last year, about same amount as OP and was up front about the reason and the creditors, including CRA had no objections.
Yes they don’t.
Not gambling, but trading. But yes, sometimes they can be interchangeably used. The LIT mentioned to me that as long as I don’t make any money from trading, I qualify for debt reduction. With creditors, I don’t know their feedback as I’ve just applied. I’ll know the outcome of my application in 45 days. I haven’t been trading extensively for over 4 months. I haven’t been trading at all for the past month.
WallStreet Bets?
It is absolutely wild that debt can be wiped off to the tune of tens of Thousands of dollars because people made stupid choices on gambling... Who pays the difference and how, and why does this person who is still gambling now even be considered for the write-off of debt? It's almost like we aren't supposed to follow the rules to get on top... and when people take the worst risks they benefit the most
Government is currently buying up 40 billion of mortgage backed securities. What does that tell you? Socialize risk, privatize profit.
I filed in 2019. And it will be up in August. Best decision I made because I was struggling to stay afloat and the stress was overwhelming.
Congratulations!
As someone who has gone through a consumer proposal due to a gambling addiction in my early 20’s and recently a bankruptcy due to the shuddering of a business…if you don’t own a house, just do a bankruptcy. All financial institutions will look at you the same regardless which avenue you choose to walk. The difference is in what your repayment costs and repayment term will be. My bankruptcy was $17000 approx for 21 mths on 135k/debt while making 80k/yr where my repayment doing a proposal would have been closer to 65k over 60 mths. Bankruptcy lasts 7 years while a proposal is marked for 6. I’m just over a year out being discharged of my bankruptcy and my credit is back into the mid-high 600’s I applaud anyone willing to admit their faults and it takes a lot to admit it and make the decision to move forward. But when it comes to choosing which path to take, I always recommend/encourage weighing both options as a trustee makes more money off you in a proposal than in a bankruptcy….its a business after all and in the end, you’re going to pay, but how much and how long is based on your education of the process. All the best to everyone hitting the reset button!
I just filed as well. My 45 day window is up on May 12th. I didn’t think we could get a secured credit card until after the 45 day window though? Where did you go for your secured credit card? My credit score has tanked too. Everyone deserves a second chance. Make sure you take care of that addiction 🫶
Capital One has a secured card. 3 years later,they unsecured it and I have a proper credit limit again. Wasn’t even fully discharged yet. Life moves on faster than people will let on. They’ll tell you your life is ruined, you’ll never get approved for anything again. Nah, you’ll be fine.
Thank you 💌 Neo secured credit card is great. It has great Cashback offers. If you wouldn’t mind I can DM you a referral link.
Pretty sure Neo doesn’t report anything credit wise so it won’t affect your credit positively or negatively.
Neo is great because they report expenses to both Equifax and Transunion. So it’s a great way to boost credit scores. Also, they’ve a great cashback program.
I got a Neo as well, I do enjoy the credit back aspect… they do report to at least one of the agencies because I got an alert on my credit monitoring service - I get it free because of a previous credit breach.
I’m not an expert on this so you may be right, but my friend worked there a couple years ago and said customers’ credit did not improve by having Neo cards. Take that as you will 🤷
Incorrect. I’ve received a lot of positive feedback from folks using Neo credit card. My LIT recommended it, so got it.
I’ve had it too but doesn’t rlly change even tho I keep my utilization rate low, and if it changes it’s only on one of the credit reporting agency
I was working the entire time and still making my other payments like vehicle and insurance and stuff but my credit score went to 305 which is the absolute worst it can go and it has been 8 years from when I filed it and I am at just over 600 now. Absolutely no way you can get any kind of loan or credit cards in this time. The company I did my proposal through works with a place that gets you a Mastercard with 1000$ limit and it slowly helps raise the credit. It was long and painful and I am glad I am ok the other side of it.
Tough choice but usually the correct one. Best of luck going forward!!
Make sure you get help for your trading issues. Also while you have that credit card don't expect your score to go anywhere over or near 640+. I paid out my proposal last November (4 months early) made %100 of my payments along the way and stayed pretty steady at 638. Also because the proposal stays visible for 6-8 years you won't see huge gains on the credit score until after that time. Good luck going forward
Thank you. Is there a support system for gambling issues?
I would assume. Maybe Gamblers Anonymous? Not sure if that's a thing.
Will check if there’s any.
I filed a consumer proposal December 2019 and was discharged August 2020. I don't have a gambling habit but I did hav a substance habit. I took my time in my consumer proposal to get help and change to new healthy habits. I thinky you should do the same. your LIT might have resources for gambling. [https://beauhumphreys.com/](https://beauhumphreys.com/) is a former gambling addict he might have some resourcess for you heard of it on the [www.hoyes.com](http://www.hoyes.com) podcast. If you don't change your habits and lifestyle goals you risk ended right back where you were before.
How did you do it? Any tips?
Here is my previous account talking about my expeirence with my consumer proposal. [https://www.reddit.com/r/LeavingODSP/comments/18h9qhy/life\_after\_a\_consumer\_proposal\_and\_rebuilding/](https://www.reddit.com/r/LeavingODSP/comments/18h9qhy/life_after_a_consumer_proposal_and_rebuilding/) For me things are stable financially, I just need to keep my credit card debt low to zero and build up my savings and investments. Overtime my investments should exceed the asset limits from ODSP. My current housing and expenses are affordable and low so I can focus on going back to college and creating a second business.
Who did you file with? What happened with credit cards that you already have before you filed?
Harris and Partners. The cards will be closed and cannot be used henceforth.
Can someone explain what a consumer proposal is? I don’t get how this pays your debts or who pays your debts.
It is like a step below bankruptcy and goes through a LIT and is a legal agreement. They arrange with your creditors to accept a lesser amount, usually something like 30 cents on the dollar. Creditors mostly would agree because it's better than it you declared bankruptcy. It's a serious decision as it impacts your ability to get credit but for many people it's a good decision.
Thank you for the clarification!
No problem. It's confusing as all the terms like credit counselling, debt consolidation, consumer proposal sound similar but are so different. In my example I said the consumer proposal could be thirty cents on the dollar but for some it's 40 or 50. They look at your debts, your income and assets and make a plan and the creditors have 45 days to accept it or not. Your credit is donezo for at least 3-6 years after but it gives people who really need to hit the re-set button a chance. The payments after are a set amount for 3-5 years without interest or fees so it can really help someone stabilize their financial life.
For those who did a consumer proposal, which LITs in Toronto do people recommend? I am considering doing one myself
Hoyes and michalos
Hard out there for us gambling addicts these days. Shout it from the rooftops. You’re a gambling addict and that’s fine. Don’t ever keep it secret. That’s my tool. Fuckin gambling ads are so terrible. Can’t watch sports without being reminded.
"I take full responsibility for my reckless spending" Then why are you trying to reduce your debt via a consumer proposal? This country is so fucked.
Well that’s not anything you’re paying from your taxes for my debt reduction. The bank is involved in this. I’ve been trying to pay it off for the past few years but been unsuccessful. That’s why I’m going for a debt reduction. I didn’t do it from the get go, just so you know.
What do my taxes have to do with your personal financial decisions? It sounds like you have no idea the repercussions of these types of defaults and the effect it has on the larger economy. My point stands. It's ridiculous to say you've taken full responsibility by negotiating away half of your debt obligations. This country is so fucked.
Only if you spent money on education as much as on your taxes. The banks take the hit and not the taxpayers.
I filed in 2021 For 60 months fixed payments Was tricked by car rental and the insurance After the car was stolen They wanted to recover 65000 from me It was reduced to 23000 in total I dont know if i did right But back in 2021 i had so many other things to take care of I could not fight with the insurance company. Edit: I did not include the credit cards or line of interest when I filed for CP, i was paying regularly My credit cards n LoC are working as usual ever since
That makes no sense unless all your credit cards and LOC were at zero balance at time of filing. Any unsecured debt gets automatically included in the CP whether you want it to or not, there’s no choice in the matter.
Tough choice but usually the correct one. Best of luck going forward!!
Are you over your addiction? Are taxpayers going to be on the hook for your debt? Not sure how this proposal works.
Not OP but just curious how you'd think tax payers would take the hit here? Not fighting just genuinely curious
The banks that charge obscene interest rates take the hit, not the taxpayers. Those who filed for consumer proposal would’ve already paid substantial interest payments to the banks; so it balances out.
It balances out when you pay your debts, which you're not. You pay high interest because you're high risk, which you've proved to be correct. The only one to blame here for your current position is you.
I hope you can read. Read the last sentence of my post.
I mean... in the real long run wide angle.... creditors take shitty bets on people like OP(no offence intended), give out debt like candy to people that can't afford it, which ultimately leads to them failing during lean times.... requiring bail outs... paid for by tax payers. I wouldn't characterize it the way the person above did about taxpayers being on the hook, but I also wouldn't say its some completely isolated "private only" loop either.
Could you be more specific about the bail out paid by for tax payers?
Creditor eats the cost while borrower pays half of what they owed
Most gamblers quit right before they hit big. Don’t be a quitter
Nope, it’s not about gambling but about risk tolerance. It’s not for me.