Bankruptcy Question & Answer Forum - Canada

Author:		Mojon
Date:		September 3, 2005
Question:		About two years ago I'd a vehicle repossessed. About6 months ago I received a letter from the lender stating I owed 8000 on the vehicle. How long do I have before I begin repaying this penalty? With this debt and another of 1000 being my only debt is a proposal a wiser choice than bankruptcy? If so, how much will the proposal cost me?
From:		Bruce, Alger & Associates Inc.
Date:		September 6, 2005
Answer:		The debt is repayable on whatever terms you can negotiate with the lender. As for a proposal or bankruptcy, this would be dependent on your overall financial situation including income and assets. My guess is that you likely would not want to declare bankruptcy or file a proposal for such a small amount of debt given the impact on your credit rating and the cost to do either. You might want to review your circumstances in detail with a trustee to determine the best course of action. Bruce Alger phone: (403) 296-2970 balger@alger.ca