Mortgage – no house

Hello, We have approx. $98,000 in debt and are finding that even though we are making payments of over 1200 per month (including interest) we are esentially spinning our wheels and it looks like we will be 8-10 years of these payments to get ahead – and that is if we can maintain this level of income. We have already met with a financial planner and have found that since my husbands income is sporatic we can not seem to make any more advances to our goals. (our debt has two sep. creditlines – 23000 and 16600 each and a mortgage that is just debt from credit line that was rolled over into a fixed interest rate(no assests from it) of 58000.

We are totally comfortable with having any excess income garnished for the bancrupcy period as we do feel that we should be doing all we can.

Our concern is that my husband is a sole proprieter of his buisness and has one full time employee. We have been able to pay our employee and make all installment and tax payments to the cra and pay all of our suppliers. Really the debt is all personal (from education and economic downturn) not buisness related And we have no other credit card debt as all debt is on the credit line.

Our main concern is what will happen with my husbands buisness. he has a great employee and does not want to lose him. Will he be able to keep on with his buisness and keep his employee during the bankrupcy proceedings? or does he have to disolve his buisness?

thank-you for your time

Posted from: British Columbia

One Response to “Mortgage – no house”

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

Likely you won’g have problems arranging to pay your current remittances, employee or the suppliers, but if you are behind with any of these it may cause a few challenges. Now this is likely something that can be overcome, but it is difficult to say without knowing more about the business and the current state of your accounts.

What you need to do is to sit down with a local trustee and provide them with more specifics about the business and these specific creditors. The trustee will in turn be able to help you arrange the smoothest way to deal with the debt but still operate the business.