Debt and Disability


#1

If this is too off-topic I will delete, I just thought perhaps others may have dealt with this.

With the seemingly endless wait for LTD and CPP disability claims, appeals, etc, having zero income makes the ability to pay bills pretty impossible. Savings lasted 3 months, EI sickness helped for 13 weeks, cashing out the only small investments I had helped a bit. But it gets overwhelming quickly. Selling small items on eBay only does so much.

I have a credit card (maxed), phone bill, and personal loan. The credit card company and phone company have been no less than fantastic to deal with. However the bank through which I have my loan, which are the biggest payments, is playing hardball. I have been told that if I miss a regular payment, they will call in the loan. This makes no sense to me, as if I am unable to make a minimum payment, how exactly would I be able to make the entire loan payment??? I don’t own a house or assets aside from my vehicle, which is 10 years old and wouldn’t profit them any if they were to take that, after the costs associated with seizing and selling it. Plus it is my only mode of transportation as I do not live where there is bus service.

This causes me almost as much stress as my disability, and the frustrating thing is that I know I will have money coming in eventually (there is a back pay that I am owed from work, currently stuck in the Phoenix fiasco), but it’s the ‘when’ that I can’t guarantee or predict.

How do people manage with no resources???


#2

I was lucky, I got LTD right away but I can see financial difficulty being common.
I guess apply for welfare?


#3

That is always an option, but it would still be less than $500 per month which covers maybe prescriptions. Hee. I may have to.


#4

consumer proposal or bankruptcy. Check out the forum http://debt.bankruptcy-canada.ca/

We did a consumer proposal on my spouses debt.


#5

Hoyes and Michalos are great at doing Consumer Proposals. They have multiple locations in Ontario. Did my proposal through them and it was painless and they do not charge anything up front.


#6

I think some banks like Alterna are offering special loans for people affected by Phoenix - based on the amount of back pay you are expecting.

I find the financial hardships of the claim process add significantly to the difficulties of dealing with my illness. I knew it could be long, but it’s worse than I anticipated.


#7

Consumer proposal can stop all interest, and then you usually negotiate a payment over 3 years to your creditors. Could be from 20-80 % of your debt.

You can get a secured credit card from many companies such as Home Trust and Capital One to use for necessary cc purchases. From $100 and up. You need to find some cash to do this, but when you start the CP then you can stop paying those creditors. When they call just tell them you are doing it, and when you have your estate #, you can give it to them.


#8

We went for 5 years for my spouse and got 19 cents on the dollar --he had over 120K in debt


#9

I can understand that.
There was almost too much for me to deal with.


#10

This is all good advice, thank you. The frustrating thing is I could get my small amount of back pay from work at any time, and would hate to have proceeded with a CP when I didn’t have to. It’s the ‘when?’ aspect of everything that is so frustrating and anxiety provoking. I also live with family and would hate them to know I have debt to begin with.