what can I lose

December 27th, 2010 by Questions

My only income is a small disability pension of less than $1000 a month. I have a lot of credit card debt and am currently paying some of them at the minimum required amount but there are 3 or 4 than I cannot give more than a token $25 a month which obviously does not even cover the interest. I am getting calls from those companies. I own an old house jointly with my husband but there is not a lot of equity in it and we also own together a paid for car that is 3 years old but is in my name. Can either of these assets be sezed in any way and if so, only half of it is mine, the rest if my husband\’s. The credit cards in question are in my name only, he is not liable for them.

Posted from: Ontario


One Response to “what can I lose”

, A licensed trustee said:

You’ve correctly identified the two things that need to be looked at more closely: the equity in your home and the value of the car. The car is easier to understand so we’ll deal with that first.

Under Ontario law you are allowed to keep a car with net worth of $5650 or less. If your 3 year old is worth more than that then in order to keep it during a bankeruptcy you will be required to pay your trustee an amount equal to whatever the excess value is. For example, if your car is worth $8,000 then you would have to pay your trustee $2,350 ($8,000 – $5,650) in order to keep your car.

The hosue is a bit more complicated – first you need to determine how much equity you do have and then assuming both you and your spouse’s name are on the deeed you can divide the equity number in 2 (cut it in half). You’ll need to pay an amoutn equal to your half of the equity to your trustee in order to keep you home.

Depending on what those two numbers are, you may want to consider filing a consumer proposal instead of filing for bankruptcy. Have a look on this site to see hom proposals work and then give consider whether or not you should use the links on this site to find a trustee in your area to speak to.

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