Question: What if you were someone who had some troubles (music industry….) when they were 23, left the country for a while, defaulted on their line of credit/credit cards just to get away, and in a state of folly and stupidity never planned to come home, but then one day came to their senses and came back, at 26, realizing they’d ruined their credit and didn’t even know how much they were in for…?
My friend J. tells me I should just “declare bankruptcy and get it over with”, since I’ll never be able to get any credit again at this point anyway. Honestly? I don’t even know how much I owe. I changed banks, phone numbers, addresses so many times– I feel like a complete criminal. Maybe 30K? I am a good person. I have just made stupid mistakes. I want to make it right. I there is a better way to work it out, I want to do it. I don’t even know what to say to the courts– it’s all such a mess. I’m so embarrassed, I keep putting this off, and I know it gets worse everyday. Where do I even begin..? Please help.
Answer: If you want to clean up your situation, the first step would be to determine how much you owe. You could request a copy of your credit report from Equifax to see who you owe. If your debts are manageable, you may be able to contact the creditors and make repayment arrangements. Or, you could have a lawyer help you make debt settlements.
If your debts are more than you can handle, then yes, either a consumer proposal or a bankruptcy might be necessary to deal with your debts and give you a fresh start. If that’s the case you should discuss your options with a licensed trustee.