Alberta Bankruptcy

Author:

Anonymous

Question:

I am a senior collecting: cpp, oas and a small employment pension. My income from the 3 pensions amounts to $1,914./mo. The only debt is to a bank line of credit and visa which is $46,000. Approximately 38 years ago I declared bankruptcy in the province of B.C. I have a good credit rating and have made my payments on a timely basis. However, I am housesitting as I am unable to make my income stretch in order to pay rent. In the event that I declare personal bankruptcy, can the bank take money from my pensions? Thank you for your answer.

From:

Alger & Associates Inc.

Date:

Mar 14, 2010

Answer:

Your income is barely above the government standard for a single person so technically you do not have sufficient income to service your debt and if you were to file bankruptcy your income would not be seized in any way. Filing for a second time increases the fees a little but you would likely have a monthly payment of approx. $250 per month. If that is manageable within your budget then filing is the right answer. Pursuant to the amendments that came into force in September 2009, a second bankruptcy takes 24 months to complete.

Karen Rideout
phone: (403) 296-2973
krideout@alger.ca