Bankruptcy Services of Collins Barrow Limited - for Calgary and Edmonton, Alberta

Author:		Hopeless
Date:		April 1, 2001
Question:		Due to the boom and bust (mostly bust) job cycle in Atlantic Canada, I accumulated $46,000 in unsecured debt. Even with a well-paying job in the US (my cost of living is high), I can't make the payments. I have an additional $23,000 in a secured student loan (not government, it was a private institution). I own a small home with about $5000 in equity in the US. If I declare bankruptcy in Canada, can I exclude the secured loan? I can make payments on that, it's the unsecured debt that's killing me. Is my US property (and credit rating) safe?


From:		Ann Clarke, Collins Barrow Limited
Date:		April 3, 2001
Answer:		Generally, secured debts are not affected by a bankruptcy and you can keep the asset(s) if you maintain the payments. What you can keep in the way of assets in a bankruptcy is determined by the exemptions legislation in the province or state where you live. I'd suggest you contact a Trustee in the Atlantic province where you used to live. You could also contact the Office of the Superintendent of Bankruptcy, a division of Industry Canada of the Government of Canada if you have difficulty locating a Trustee. Ann Clarke phone: (403) 296-2972 aclarke@moneyhelp.ca