Question: The house and mortgage is registered under my spouse’s name but my name is in a ownership title as well.
Both of us are running our own businesses. Since recession started in 2008 our businesses are very slow and we barely break even.
To increase sales we were convinced to advertise with Yellow Pages, so we did. That kind of advertising brought in no business whatsoever. At this moment both of our businesses owe Yellow Pages $100,000.
I was the one who signed contracts with them.
Do you suggest to file my personal bankruptcy or just write them a consumer proposal ? if it’s a proposal what kind of monthly payment would make my life easier ?
Thanks, Mark
Answer: Under current rules you can only file a consumer proposal if your debts are less than $75,000, so if you owe $100,000 to the yellow pages, you can’t file a consumer proposal. It may be possible to file a Division 1 proposal, which is more complicated. The monthly payment would depend on what you can afford.
It may also make sense to simply file bankruptcy, depending on your income and the value of the house.
We suggest you contact a licensed bankruptcy trustee to review your situation and help you crunch the numbers to determine which option will work best for you.