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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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Considering Bankruptcy

My husband and I have both always worked, but because of too much credit card debt became caught in the cycle of running short of cash and then turning to the cards. My car died in October and I am financing a 2003. My husband was layed off from work today. All of my debt is my own. I have 2 questions. 1. I am still employed and earn 2000 a month. Power=250.00 a month. Heating fuel=150.00 a month Phones are 180.00 Gas is 200.00 Groceries 600.00 Satellite is 65.00 Car payment is 354.00 Insurance is 75.00 a month. This is not counting any extras. I can afrord these things. I have a non working 1998 car as well. My credit card debt is approximately 25,000.00. With my husband not working I am not going to be able to make my payments. How do I go about keeping my financed car? Now my first question was so long I have forgotten the second one.

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2 Responses to “Considering Bankruptcy”

A licensed trustee said...

You may find this encouraging – you should not be thinking about bankruptcy or a proposal (frankly, you are eligible even if you want to).

Two solutions come to mind:

1) ask the bank to increase your line of credit limit so that you can pay MBNA off

2) file a debt management plan (this option is not available everywhere in Canada).

Given the fact that you are on a fixed income your bank may not be too enthusiastic about increasing the limit on your line of credit. They might require some assurances that you are going to increase your income (maybe a part-time job if your disability will allow it or perhaps by renting out a room). Still, if you remind them that you have over $150,000 in equity in your house you might be ok…

The debt management plan is a voluntary program whereby you use the services of a non-profit to deal with MBNA. Usually, you make a single payment to the non-profit every month and they pay MBNA. In most cases there are no new iterest charges and you can pay off the debt over 48 months. That means you would have a payment of about $150 a month.

I hope this is of some assistance – I suggest you pay a visit to your banker (or ask them to visit you). I suspect they will be able to help you.

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

Currently, in Alberta for instance, a bankrupt may now keep one motor vehicle worth up to $5,000. As long as your vehicle is worth less than this $5,000, and the car has no liens or loans registered against it, the trustee would not seize your car in the event of your bankruptcy.
I suggest that you contact a licensed trustee in your area and he will be able to explain how the exemptions work in your province.