fully secured lines of credit

i have two personal lines of credit that are fully secured with g.i.c.`s. i have no problem keeping up the payments as they are quite low. as long as this contract is kept in good stead can the lines of credit be seperate from the bankruptcy. also. i am allowed 32000 home equity in sask. and the home is paid for, and lets say the most it could be assesed at would be 42000. how would bankruptcy work in this case?

Posted from: Saskatchewan

One Response to “fully secured lines of credit”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

The GIC’s are fully secured. So to keep them you have to continue keeping up with the payments and you shouldn’t find that to much is changed as a result of the bankruptcy.

As for the home, if there is $10,000 non-exempt equity (meaning $10,000 more than is allowed by the provincial exemption) then you will have to provide that $10,000 into your trustee. If you are not able to do that the trustee would likely have to sell your property, you would get the first $32,000 and the rest would then go into the bankruptcy estate.