Eligible for Proposal or Bankruptcy??
February 12th, 2007 by Questions
Hi, My income is $1850/month (take home).
Spouse’s income is approx $2200/month (take home). Debts are approx $30,000: Credit cards are low interest…debt is credit cards and credit line (credit line is int only mo. pymt). The RRSP is about $9000 which know would have to distribute amongst creditors. Total monthly debt paymts approx $700. Credit cards are joint. I researched that not more than 20% of income should go towards debt. Based on just my income, the figure would be close to $400/month. I couldn’t afford to pay the full amt is spouse lost job, which hasn’t happened.
Question: Based on above info, am I eligible for consumer proposal or bankruptcy?
Problem is spouse’s income is variable/seasonal…debt has accumulated over past few years. We have always been able to make pymts (min. & above). My spouse thinks bankruptcy is an excellent idea so that we can have “a fresh start” and to not have to pay so much $$$ & int. for some long. His credit rating/score has been poor, so that’s why he’s a supplementary card holder only.
I read that only one spouse has to file, so in our case it would be me since I’m the primary responsible. My spouse wouldn’t lose anything if he filed since he has no credit rating.
I disagree strongly with the idea of filing bankruptcy, since I don’t want to lose my good/fair credit rating, endure the stress, and lose my credit rating for 7 years.
Second question: If spousal income became nil due to his type of work, would/should I declare bankruptcy, since my income is low? (Rent is $900/month, plus utilities, etc.)…
Please advise me what would be best in my circumstances regarding my two questions.
Thank you so kindly for your help. (I’ve read lots in the blogs and your advise to people is always so excellent).