Bankruptcy Question & Answer Forum - Canada

Author:		Samantha
Date:		November 16, 2005
Question:		Some financial problems are dogging me from my previous marriage. I had thought they were all settled but now I find out there is still a debt that I am responsible for because I had signed a personal guarantee at the time. Now six years later that creditor is looking for nearly $20,000 that they claim is a deficiency and must be paid. This debt is from my ex-husband's failed business and it is just too much for me to handle. He refuses to deal with it and his solution is to declare bankruptcy which would leave me holding the bag for the entire amount of nearly $20,000. That would leave me with little choice but to declare bankruptcy as well. Unfortunately about 20 years ago he dragged me through a bankruptcy related to the failure of a business he had at that time - so if I am forced to declare bankruptcy this would be the second time. I have searched many Canadian sites but cannot seem to find the answer to this question.. can you plase tell me how long a second bankruptcy stays on a person's credit record? I have been told a second one stays on it for twice the time, 14 years, is this correct?
From:		Bruce, Alger & Associates Inc.
Date:		November 16, 2005
Answer:		Yes, it is the credit raters' policy to retain this information for 14 years. Have you thought about approaching this creditor and trying to make a deal to buy your way off the guarantee? Depending on your situation and the attitude of the creditor, you might be able to make a deal that keeps you out of bankruptcy and gets them more than they would get in a bankruptcy. Bruce Alger phone: (403) 296-2970 balger@alger.ca