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credit cards

I”m 62 years old with no job.I only have a TFSA account at Questrade.Can credit cards companies garnish that account.Is it in their practice to do so?If I file for bankruptcy,is that money($15.000) exempt?
I owe over 40.000$ in credit cards and no income for now.What is your advice.Thanks for your help.

Posted from: British Columbia

One Response to “credit cards”

A licensed trustee said...

TFSA are not exempt from seizure that means your creditors can seize them if they get a Judgment against you, further if you owe the bank that holds your TFSA money on a credit card they may be able to use something called “the right of offset” to simply apply your TFSA money to pay down a credit card.

TFSA are also are not protected if you file for bankruptcy – they will be seized and divided amongst your unsecured creditors.

Two obvious options – start withdrawing the money to live on. You have to eat…

Alternatively, you could offer your creditors a “lumpsum” proposal – a one time payment of say $12,000 to settle the $40,000 you owe. I suspect your creditors would accept the offer. Of course that doesn’t leave much for you to live off…

Use the links to find a trustee in your area and give them a call to discuss your situation and options.