Question: Hi, I have already gone through bankruptcy before approximately 15 years ago. Now I’m in a terrible situation with my finances where I can’t make ends meet.
Here is my situation: In the past 6 years, I have been married, had a child, divorced, and now have shared custody of my child. I have been living with a woman for over a year now and she is expecting.
I owe approximately 50K in debt on credit cards and 2 seperate lines of credit.
I make 60K a year.
The woman I am living with has been separated from her ex for over one year. He is claiming bankruptcy, which will force her into bankruptcy as well as she is currently not working and is co-owner of their home and vehicles (her ex and the house is in a western province)
with the arrival of a newborn just before Christmas we are very scared about our finances and our future.
Please help! any advice would be greatly appreciated.
Answer: You have severe financial problems and your situation is urgent, but it is not hopeless. You have a number of options.
One option would be to file bankruptcy in Ontario again. However, a second bankruptcy is more costly and cumbersome than a first bankruptcy. It will last for at least one year (instead of the minimum of nine months in a first bankruptcy), and you are required to appear in bankruptcy Court to receive your discharge.
A better option would probably be to file a consumer proposal, where you make a deal with your creditors and avoid a second bankruptcy.
Whether a bankruptcy or a proposal is the correct option will depend on a number of factors. You earn $60,000 per year, so you have good income, which is generally the most important factor in filing a consumer proposal.
Our debt options calculator can help you assess your different options. Then, contact a licensed trustee in Ontario to arrange for a detailed, no obligation, no cost review of all of your options, and then you can make an informed decision.