FILL OUT THE FORM BELOW AND RECEIVE A NO-OBLIGATION CONSULTATION

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If you have unsecured debt of under $10,000 and live in the Province of Ontario filing bankruptcy may not be the best option for you. We suggest you contact the Office of the Superintendent of Bankruptcy at 416-973-6441 to discuss your options, or you can visit their website here.

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Wait for Judgement or declare bankruptcy?

I have received a Summons on a $35,000 personal line of credit I owe the bank for my business. The deadline to respond passed a few days ago.

I am trying to decide the best option. I have very little in assets, not even $1000 in household goods, no RSVP, no savings, no vehicle. I was forced by my creditors to close my business, so I now have no income. I renegociated my mortage last year to pay off debts, so have no real equity.

I have been trying to sell my business and recently got some interest, but not an offer yet. Am I risking losing the little bit I have left by not declaring bankruptcy immediately – hoping to get a solid offer on my business to help pay my debt?

How long do I have from the time of the summons to judgement? What can they take from me once they get the judgement?

Should I just accept defeat and declare bankruptcy???

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One Response to “Wait for Judgement or declare bankruptcy?”

Barton Goth, GCO Inc. Bankruptcy Trustees said...

I wouldn’t throw in the towel just yet, you are better to wait until your creditor has taken things to the next level before you declare a bankruptcy as you never know if the sale of the business is going to come through or not. I would expect the next step for your creditor would be to attempt a wage garnishee or seizure of a bank account. However, there is no way of telling if that is going to be implemented next week or next month. Therefore I recommend meeting striving to hang on as long as possible, just incase the sale goes through. In the meantime it would be a good idea to meet with a trustee to review your options, filling out of the application form the trustee will give you. Doing so will put you in a good position to react as quickly as possible to remove the garnishee or account seizure, the key thing is to not file those documents with the trustee until the creditor has forced your hand. This may only be a matter of days or perhaps weeks, but you never know what may happen in the mean time.