Bankruptcy Question & Answer Forum - Canada

Author:		Ken
Date:		September 30, 2005
Question:		I am thinking of personal backruptcy. I owe $38000 in dept and take home $2000 a month. Every month I am tapped out for money. I tried to consolidate. But I have only $10000 in equity. My truck is worth $2000. I have a tv worth $1500 etc. Can they take these from me? I also owe my father $1000. And I am planing on paying him back. Should I pay him before or after I file? The money would be from my loan payments that I am deciding on not making. Thanks.
From:		Bruce, Alger & Associates Inc.
Date:		October 3, 2005
Answer:		You have asked a number of questions. Firstly you might lose your TV but nothing else, but you could likely also be able to buy it back from your trustee while in bankruptcy. Is it truly worth $1500, or is that what you paid for it? The value to us is its actual current value. As for paying your father back, this would be a preference and it is therefore unacceptable to pay him in full when you know that your other creditors cannot be paid. It is also not acceptable to make arrangements to continue to pay him while in bankruptcy. However, what you chose to do after your bankruptcy is your own business. Bruce Alger phone: (403) 296-2970 balger@alger.ca