Question: My daughter is a separated single mom, financially she has hit rock bottom, she is receiving no subsidies and is paying rent, babysitting, hydro etc. more than she earns, she receives no child support as her husband is in rehab, no income, no job. A bank gave my daughter a line of credit for $25,000 knowing her income, that her husband was unemployed, no colateral and no co-signer, they have froze her account as she cannot make the payments. If she files for personal bankrupcy, will that include this line of credit at the bank?
Answer: Yes, a line of credit would be included if she filed for bankruptcy in Ontario. She should immediately open a new bank account at a new bank (where she does not owe any money) so that she has a place to deposit her paycheques and pay her rent.
For more information on bankruptcy, she should contact an Ontario bankruptcy trustee.