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should I go bankrupt

our situation is:
I was in a car accident over 4 years ago and have not settled. I have been told I am disable and unable to work. My husband is self employed in a trade. Last year everything slowed down and fell behind and not able to get caught up. We lost our lease vehicle this year our place is in foreclosure, court order next month. (no equity, most likely will owe still) The only credit we are current on is a credit card, almost at limit. I have no idea when I will settle with insurance. Do we have any other option? What will happen if I settle in the time before we get discharged?

Posted from: British Columbia

One Response to “should I go bankrupt”

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

From the sounds of it a bankruptcy may be your only choice. However, the settlement may be an issue. What will be important here is the nature of the lawsuit / settlement. If you file for bankruptcy the only awards relating to settlements that you can keep relate to personal injury or pain and suffering. If a portion of the settlement relates to these items you can keep it (i.e. it is considered exempt). However, if it is from damage to property, loss of income or any other reason the monies will be lost as part of the bankruptcy.