Credit Card Debt
October 26th, 2010 by Questions
I owe over 150,000 in credit card debt and cannot continue to make payments.
My wife has considerable assets.
Can I make a proposal to to the credit cards or will they go after my wife`s assets?
Is it better to take a mortgage on our home and pay off the credit card debt that way?
Posted from: Ontario
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October 27, 2010 at 8:28 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
The downside of the consumer proposals is that you will have a negative mark on your credit report (R7) listed for 3 years from completion, so taking a mortgage does end up having a less damage to your credit report.
However, the bigger issue may be the equity in the home. As you likely own 1/2 of the equity in the home that must be considered when making your offer to the creditors under the consumer proposal. So depending on how much equity is in the house you may have to offer a fairly high percentage recovery under a consumer proposal, or you may find that it simply isn’t cost effective.
Unfortunately it is impossible for me to tell, to determine whether or not a consumer proposal will work you need to contact a local trustee directly and they will help you determine whether or not filing a consumer proposal will be helpful or not.