after unemployment

April 2nd, 2012 by Questions

My husband and I worked for the same company for 22 years before the business was sold and we became unemployed. It took over 2 years to find sustainable employment as we are both in our 50’s. We worked several part-time jobs at once and ended up owing about $1300 in income tax, which we have not yet paid. Before the business was sold, our mtg renewal came up and the bank put it through a line of credit instead of a new mortgage. We maxed out the line of credit, owe 4500 on 2 other lines of credit and $12000 on a loan to cover credit card debt, $3000 that was loaned to cover property tax for 2 years and few bills in collection. If we sold our house, we would walk away debt free, but with not much else. We are both now gainfully employed but can’t seem to catch up. Is personal bankruptcy our only option? Is there any way we can keep our house?

Posted from: British Columbia

Questions

One Response to “after unemployment”


, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

It is difficult to answer your question properly without more information. The reason for this is that when you file for bankruptcy you are only permitted to keep a portion of the equity in your house. In BC you are permitted Equity in a home of up to $12,000 in Greater Vancouver or Victoria or a maximum of up to $9,000 elsewhere in the Province.

Regardless, a bankruptcy may help depending on the level of equity. But the only way to know is for you to contact a local trustee and discuss the details of the property in more depth.

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