Bankruptcy

December 17th, 2009 by Questions

THIS IS MY FIRST BANKRUPTCY I AM CONSIDERING AND I AM MARRIED WITH A CHILD AND WILL BE MOST LIKELY GOING BANKRUPT (ALONE) MAINLY OF REVENUE CANADA AND SOME CREDITORS. I BOUGHT A HOME LAST YEAR AND THERE IS NO EQUITY WITHIN THE HOME SO I KNOW THAT I CAN FILE AND STILL KEEP THE HOUSE. MY QUESTION IS WHAT IS THE INITAL COST OF BANKRUPTCY & IS IT BASED ON A SET FEE OR IS IT BASED ON THE TOTAL OUTSTANDING DEBT OWING? ALSO, IF I HAVE BEEN USING MY CREDIT CARDS AND HAVE MAXED THEM OUT WITHIN A SMALL PERIOD OF TIME PRIOR TO BANKRUPTCY, HOW WILL THIS EFFECT ME LONG TERM OR IS THIS NOT SOMETHING TO WORRY ABOUT.
ALL MY DEBTS ARE UNSECURED. THANKS.

Posted from: Ontario

Questions

One Response to “Bankruptcy”



, A licensed trustee said:

The cost of bankruptcy is based on your household size and total income. Strangely enough, the amount of your debts doesn’t usually factor in to the equation.

If you have continued to use credit once you’ve determined that you cannot repay the debt then your bankruptcy will likely be extended and you may be required to attend in Court to explain your conduct.

The best thing to do is to take copies of your recent credit card statements with you when you meet with a trustee – that way they will have a better understanding of the extent of the problem and describe the likely consequences of your actions.

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