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fixed debt

Hello,
about a year ago we fixded our debts (bad creditcard/startinga business…) into a fixed payment we thought we could afford. It is fixed for 10 years but now we can not afford the payments. Are we out of options. It is my understanding that we can not bankrupt out on fixed debt. What can we do?

thank-you

Posted from: British Columbia

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One Response to “fixed debt”

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

This really depends on what you did to fix your debts. “Fixing,” really isn’t a term that conveys any meaning in the financial world as there are many ways to fix debt issues (i.e. a consolidation loan, consumer proposal, bankruptcy etc.).

But trying to read between the lines the only thing you could have done that would make it so that the filing of a bankruptcy would be more difficult would be if you had taken out some type of secured loan. If you pledged assets as security against a loan, then failure to pay this loan would result in the loss or seizure of these assets, and there is nothing a bankruptcy can do about this. However, a bankruptcy may still be necessary, as once the assets are seized by the creditors the bankruptcy can still protect you from the remaining balance, but it simply isn’t as straightforward.