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Unemployment and Bankruptcy

Can a person declare bankruptcy while unemployed?

I was laid off in the first week of May and I have started recieving EI. The EI payments will end next April.

I have about 120K in debt. About 75K of the debt is covered by credit insurance which pays the minimum payment (3% – 5% per month) as long as I`am unemployed.

I`am planning to utilize my forced unemployment to upgrade my skills.
Taking advantage of my current unemployment status can I also declare bankruptcy and get rid of my debt before taking a new job?

Posted from: Ontario

One Response to “Unemployment and Bankruptcy”

Barton Goth – Goth & Company Inc. – Bankruptcy Trustees said...

You definate can file for bankruptcy while on EI. The only thing that may be a challenge is the cost of a bankruptcy. However, it will likely cost you less when on EI then after you go back to work. It sounds as if you are best to local trustee and discuss this in more detail.