Question: Two years ago i had a car accident and since then i have not been able to go back to work. for a while i received some benefits from insurance and then it stopped, i might get some money later on, but it will take some time before that happens. right now i owe my credit cards and line of credits around $90,000.00 and i can’t make the monthly payments unless i get money from one credit card to pay for another one. do i have to declare banktruptcy or should i wait as long as i can?
Answer: The most common reason for residents of Ontario to declare bankruptcy is to prevent their wages from being garnisheed. In your case, if you are not working, you do not need to go bankrupt to prevent a wage garnishment, so yes, you could wait to declare bankruptcy.
However, if you are under significant stress and want to deal with your debts while you recover from your accident, bankruptcy is an option. You should consult a bankruptcy trustee and ask them to explain the pros and cons of bankruptcy in your situation, and then you can make a decision that’s right for you.