# Bankruptcy DAOD 5019-8   [Merged]



## highlander85 (26 Apr 2009)

I have been discharged from bankruptcy last month and would like to start applying for the military can i still join with the discharged bankruptcy?


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## Mike Baker (26 Apr 2009)

Did you do a search on here? Or visit a local Recruiting Office? Try those, and you should get you're answer :nod:


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## Yrys (26 Apr 2009)

Reposting a locked topic ain't appreciated here...


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## highlander85 (26 Apr 2009)

ain't isnt a word, and I searched everywhere and couldnt find it. The last one was locked due to me asking so many questions in one topic.


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## SupersonicMax (26 Apr 2009)

From Merriam-Webster


> Main Entry: ain't
> Pronunciation: \ˈānt\
> Etymology: contraction of are not
> Date: 1749
> ...



You asked the question, were suggested topics to search for and yet, come here and ask the same question again?  From the previous post:



> Please read the TOPICS that cover:
> 
> Finances.
> 
> ...


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## Yrys (26 Apr 2009)

> Where are you guys coming from?  Did you read the site Guidelines?  You just registered two minutes ago, and already asked a multiple choice series of questions.
> 
> Please read the TOPICS that cover:
> 
> ...




Which of those topics did you read ?


And yes, you're right 'ain't' isn't a word. It's 2 words contract into  one  , as 'could'nt' .

Did you use the search engin on the main page? Which key words did you use in your search ?


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## aesop081 (26 Apr 2009)

highlander85 said:
			
		

> ain't isnt a word,



Ain't you just the cutest thing........awwww.


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## Franko (26 Apr 2009)

Well this one spun nicely around the drain.

*The Army.ca Staff*


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## crazyrcrwife (6 Jun 2013)

I'm curious that if my husband and I both file for bankruptcy and he goes on "counseling" does that stop him from doing his Sgt course? if it does, for how long? 
we have to file, but if it effects his entering  to that course, then we may wait until after he's started that course to file for bankruptcy


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## The_Falcon (6 Jun 2013)

DAOD 5019-8 http://www.admfincs-smafinsm.forces.gc.ca/dao-doa/5000/5019-8-eng.asp  would be your reference.


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## Jammer (6 Jun 2013)

Have you looked into entering into a consumer proposal? 

It presents a better image that debts are attempting to be managed.


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## crazyrcrwife (6 Jun 2013)

we have spoken to 2  trustees and the only solution is bankruptcy.


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## Jammer (6 Jun 2013)

With individual case being different it's difficult to say what the implication on your husbands career might be.

It can affect his current security clearance, or his ability to obtain a higher level if it required for his job.

He/you will be unable to take advantage of Canex low interest payments plans.

Units will be guided by the national policy in one of the above posts. He will likely be encouraged/directed to seek financial counselling. It would be benificial for both of you to take advantage of this service.

With regard to crse's etc...I cannot say with any certainty what the implications might be. 

I would advise that being up front about this with his unit is the best thing possible. If he were to spring this upon his unit while on a career course...it would be very bad indeed....not recommended at all.

Bankruptcy is not the end of the world. Many folks have been through the ringer and have come out the better for it.


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## Eye In The Sky (6 Jun 2013)

Have either of you approached SISIP for their assessment and advice?  I'd take the time to read the info at the link below.

https://www.cfpsa.com/en/AboutUs/SISIPFS/FinancialCounselling/Pages/default.aspx


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## DAA (6 Jun 2013)

Jammer said:
			
		

> I would advise that being up front about this with his unit is the best thing possible. If he were to spring this upon his unit while on a career course...it would be very bad indeed....not recommended at all.
> 
> Bankruptcy is not the end of the world. Many folks have been through the ringer and have come out the better for it.



See QR&O 19.08 as you have "obligations".  The question is "What will your unit decide to do?"  If either member holds a Level III Clearance, then in all likelihood a "Change of Circumstance" report would be in order.  After that, it's a roll of the dice.  I have seen units do nothing, as it was considered to be a "private" matter, the member was dealing with it and it did not have any effect on their job performance.  Career action normally doesn't take place unless the unit receives a "complaint" from a Creditor.

Like mentioned above, it's not the end of the world and does happen.  On a side note, Bankruptcy and Insolvency listings are provided to Pay Accounting Officers on either a monthly or quarterly basis (can't remember which).  So at some point, it will probably be discovered.


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## Jammer (6 Jun 2013)

Good call about SISIP...forgot about them. Lot's of good resources there.


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## Wookilar (6 Jun 2013)

I thirdly recommend SISIP.

9D and I went through that dance years ago ourselves and SISIP was a huge help. We worked with them alongside the trustee. Since then I have assisted a few of my troops through various issues by sending them to SISIP.

It feels a bit like they are in your shorts for the first while, but the budgeting process becomes second nature after a bit.

As far as career repercussions, I can only speak for myself and a 2 of my troops that have gone through bankruptcies. I had none, went on courses, got promoted etc etc. One of my troops was nailed on his security clearance which had some posting implications for him, but he still went on his courses (once SISIP confirmed with the CoC that obligations were being met). The other was the same as myself.


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## Occam (6 Jun 2013)

I would also recommend SISIP in conjunction with the trustee's recommendation.  In some cases even SISIP can't help out, but they'll tell you fairly quickly if that's the case.

As far as career implications, the common practice is that there aren't any until creditors start sending letters to your CO.  Once that starts happening, the DAOD kicks in.  Once you start the bankruptcy process, all those letters to you and the CO will stop.  Your security clearance, generally, is safe as long as you're open and honest with everyone about your debt and/or bankruptcy proceedings.  The risk is from subversion against someone trying to hide their financial situation.  If you're open and up front about it all, you're not at risk from subversion and therefore no longer a security risk.  Declaring bankruptcy isn't easy - but it is taking the bull by the horns and dealing with the problem and is viewed that way now.


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## Nemo888 (6 Jun 2013)

http://www.k3c.org/

Best resource ever for money problems. Saved me from going bankrupt. Consolidated all my debts, got some debts forgiven and stopped all the interest. They take 3% of your payments and since they are a nonprofit it goes to charities like women's shelters and such. My debt got farmed out to some real scumbags who took full payment then refused to give me a receipt. They then sold my debt a second time to an even worse company. K3C went to the bank and got them to take the paper still outstanding back and forgive the one already paid.  Much better than shady bankruptcy trustees who probably didn't even mention they can stop all the interest on your paper

If you are in the Kingston-Bellevile/Trenton or Ottawa area give them a call.


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## newwifey (6 Jun 2013)

Nemo888 said:
			
		

> http://www.k3c.org/
> 
> Best resource ever for money problems. Saved me from going bankrupt. Consolidated all my debts, got some debts forgiven and stopped all the interest. They take 3% of your payments and since they are a nonprofit it goes to charities like women's shelters and such. My debt got farmed out to some real scumbags who took full payment then refused to give me a receipt. They then sold my debt a second time to an even worse company. K3C went to the bank and got them to take the paper still outstanding back and forgive the one already paid.  Much better than shady bankruptcy trustees who probably didn't even mention they can stop all the interest on your paper
> 
> If you are in the Kingston-Bellevile/Trenton or Ottawa area give them a call.



This is only a good route, "IF" you qualify for it.
There are criteria and formulas that still need to be used.  I went to a Credit Counselling seminar to explore every option available to me, I sent in for an orderly repayment of debts, denied.  Went to a trustee for a proposal, denied.  Bankruptcy was my only option.

Realistically, all affect your credit.
You have lots of options and some great advice here.  
From personal experience (just my own, not military) You can recover from it.  But use it as a really great learning experience so you are never in that place again.


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## Cbbmtt (19 Feb 2015)

If you go bankrupt do they drain all your RRSP's in order to help pay for your debts? The old link in this thread for DAOD does not work, any idea what the new one is?

Old topic, but relates to the question.


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## Oldgateboatdriver (19 Feb 2015)

Your RRSP and what happens to them in a Bankruptcy are not military administration matters. Consult a Trustee in Bankruptcy for your answer. 

As a lawyer, I recall that depending on various factors, some RRSP are exempt from the Bankruptcy, while some others aren't. The Trustee will be able to advise you regardless of your intent to file for protection.


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## The_Falcon (21 Feb 2015)

Cbbmtt said:
			
		

> If you go bankrupt do they drain all your RRSP's in order to help pay for your debts? The old link in this thread for DAOD does not work, any idea what the new one is?
> 
> Old topic, but relates to the question.



As far as I know google still works which is way I mentioned the specific DAOD being DAOD 5019-8. And yes as mentioned above, if you are having financial issues and worried about what may/or may not be accessible to your creditors, you should be consulting advice from qualified folks in the real world, and not people you don't know on the internet.


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## Eye In The Sky (7 May 2018)

http://www.forces.gc.ca/en/about-policies-standards-defence-admin-orders-directives-5000/5019-8.page


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