r lamb

August 31st, 2009 by Questions

I am on disability in Ontario and have been for over 7yrs. I went through a separation from my spouse 2yrs ago and am unable to keep up with my debt. I only owe about $7500 to credit card and $1500 to overdraft through my bank. Because Disability over paid me, they are garnishing some off each cheque and I am unable to pay even the minimum payment on my debts. I am thinking about declaring bankruptcy and don`t know how to do this while on disability. Is there any options or resources for me and my position? Anything you can provide to help would be greatly appreciated. Thanks 🙂

Posted from: Ontario


One Response to “r lamb”

, A licensed trustee said:

You certainly have the right to file for bankruptcy while you are on disability, but many people decide not to bother. While you are on disability you are “creditor proof” – your creditors cannot take deductions directly from your disability pension. The debt doesn’t go away, but you might have better things to do with your disability than paying for a legal procedure (like bankruptcy).

That being said, if the debts are really bothering you and you want to resolve the situation then use the links on this site to find a trustee in your area and give them a call. I suspect they will also suggest you do nothing, but they’ll help you file if that’s what you really want to do.

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