Question: my ex husband and i got divorced a year ago. Neither he or i had good enough to assume or even split the $20,000 line of credit . He was maintaining the interest on it. I just found out he has gone bankrupt and the bank is coming after me for the money. I cant afford to pay all of that and I am drowning in debt as it is, what is my options?
Answer: If you can't afford to pay the bank in full, you have four options:
First, you could do nothing, or pay them what you can afford. Unfortunately you run the risk that they take you to court and attempt to garnishee your wages.
Second, you could attempt to file a Debt Management Plan through a non-profit credit counsellor. Under a Debt Management Plan you are required to pay the debts in full over a two to five year period, which may not be possible in your case.
The third option would be to file a consumer proposal, where you offer to pay some, but not all, of the amount owing.
If you can't afford that, the final option is to declare personal bankruptcy. Bankruptcy eliminates your debts, but also impacts on your credit rating.
The correct option for you will depend on your monthly income, and whether or not you own any assets, like a car, house, or RRSP.
To find the answers in your specific case we strongly recommend that you arrange a no charge initial consultation with a trustee in bankruptcy licensed by the federal government so that they can review all of your options with you, and then you can make an informed decision.
Answer: If you can't afford to pay the bank in full, you have four options:
First, you could do nothing, or pay them what you can afford. Unfortunately you run the risk that they take you to court and attempt to garnishee your wages.
Second, you could attempt to file a Debt Management Plan through a non-profit credit counsellor. Under a Debt Management Plan you are required to pay the debts in full over a two to five year period, which may not be possible in your case.
The third option would be to file a consumer proposal, where you offer to pay some, but not all, of the amount owing.
If you can't afford that, the final option is to declare personal bankruptcy. Bankruptcy eliminates your debts, but also impacts on your credit rating.
The correct option for you will depend on your monthly income, and whether or not you own any assets, like a car, house, or RRSP.
To find the answers in your specific case we strongly recommend that you arrange a no charge initial consultation with a trustee in bankruptcy licensed by the federal government so that they can review all of your options with you, and then you can make an informed decision.
Labels: bankruptcy Ontario, consumer proposal
posted by Questions @ 4:07 PM
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