The time leading up to bankruptcy…

March 9th, 2009 by Questions

Recently, we withdrew money from a line of credit that we`ve had for quite a while to pay off a few personal loans (money borrowed from family and friends). We also had to withdraw our RSP`s (though there wasn`t much in the accounts to begin with) to pay for our small business and other living expenses as work has slowed down. Now, we`ve found out that my husband is going to be out of work all together and that there aren`t any jobs around in his line of work. There`s no way we`ll be able to sustain our bills and already previously incurred debts (including a consumer proposal that we`ve been paying for the past two years).

We struggled and put this off for years but we have finally come to the realization that we have no choice but to file for bankruptcy. Will the recent financial transactions we`ve made be held against us when we file? Also, we own two cars (together their value would total $5000). We both need our vehicles as we work separately. Will we able to keep them both?

Posted from: Ontario

Questions

One Response to “The time leading up to bankruptcy…”



March 09, 2009 at 8:28 am, A licensed trustee said:

Since you are already in a consumer proposal I think you should contact your trustee to discuss what you’ve done and how it may impact on a bankruptcy. There are some things you’ve listed that give me cause for concern, but it will be up to your trustee to determine what the consequences of these things may be.

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