Husband just lost his job

March 20th, 2012 by Questions

My husband just found out his company is closing is 6 weeks and after 15 years he is out of a job. He will get severance for 15 weeks (about 10,00k) He has a 36k debt consolidation bank loan that I co-signed for. He also has 5k in credit card debt. I have a 12 k TD line of credit as well as 15k in CIBC and TD visa’s (combined). We also have an RRSP loan for 10k and a furniture (interest free credit) for 3k that we pay monthly payments on. In total we have 72k in debt and there is NO way I can cover all of this on my own or even with his UI payments when they start.

My question is, since I co-signed his loan can I file a consumer proposal for that debt as well as my debts? I’m thinking that he can’t file for a CP because of his severance and then UI (will be $300/wk). He’s planning on starting his own business and is hoping for re-training through UI. That won’t happen until next year. I take home 3400.00 per month and our mortgage/taxes are 888.00 plus all the other household bills. We are now losing 2500 per month without him working.
Please advise! Thanks

Posted from: Ontario

Questions

One Response to “Husband just lost his job”



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

A consumer proposal may be just the thing, but it is difficult to tell without reviewing your situation in more detail. What I would recommend is you contact a local trustee and arrange for a consultation. The only hiccup I think you will run into is that you wouldn’t be able to clear him from the debt by you filing a consumer proposal, so it might require that he file either a bankruptcy or a potentially you could look at a joint consumer proposal, but that is a discussion that is more in depth than this forum will permit. So contact a licensed trustee in your area and they will be able to help you determine what the best route would be.

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