Free Consultation

Bankruptcy

I am on CPP disability Pension 885.00 per month and a dietary supplement of 132.00 per month from ODSP.
I have a Zellers credit card that is out of hand. almost 5,000 and the interest is almost 30% per month. I also owe 2300.00 income tax. This came from lump payment etc for years back and again the interest eats up the 150.00 I receive each year as refund so its not going down at all. On the Zellers I cannot even afford the minimum payment. they offered to reduce the interest and I should pay 90.00 per month but again it is unreachable for me at this point.
My ODSP could change after April this year. The are changing special needs and it could be reduced.

I am going to be 62 in July and I am getting advice about bankruptcy being my best option. Are there fees to submit a bankruptcy??? and is the income tax also written off in the bankruptcy. I have no assests just furniture in a subsidized apartment. No vechicle etc.

Thank you

Posted from: Ontario

One Response to “Bankruptcy”

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

I agree with the advice that you have received that a bankruptcy is likely the best fit for your situation.

There is a cost to file a bankruptcy, this minimum fee is set by each individual trustee office, so you are best to contact a local trustee to see what is requried in your area, but typically it is around $200 per month.