I presently earn 3800.00 a month net. This includes overtime of 70 hours a month. My net income without overtime is about 2600.00 a month. Married and two children. Rent a house and have no real assets or savings.

I owe the following: bank loan (joint with wife) 15000 secured by our vehicles, avco 2700 secured by a chattel on my personal property, 28000 in credit card debts. I cannot meet the monthly commitments on all of these debts. We require both vehicles and do not want to approach our bank about declaring bankruptcy in case they get cold feet and call the loan. We make our payments faithfully. My wife is on the loan and she doesn't want to declare bankcruptcy because the debts are in my name only, except the bank loan.

The reason I am in this position is I can not handle credit cards properly. Before I know it I am buried and can't get out.

Will I be able to: keep the vehicles, what happens to my income including overtime monies, if my wife is not bankrupt can she hold the personal property in her name, will this clean off my credit rating and only show the bankruptcy?

We normally suggest that someone in your situation see a Trustee for a free assessment of your financial situation. There is no obligation to this assessment but it gives you a lot of information and options.

Whether you can keep the vehicle will depend on the bank and whether you can afford them. your wife can hold personal property if she is not bankrupt, however, if she is responsible for the debt the creditors can pursue her. She may also have to look at bankruptcy. Your credit rating sill show that you filed bankruptcy but also all of the previous info will show until seven years after it was reported.

If you have any further questions or want to come in for a free assessment to our office, please call or email me using the information below.

Shane Brenneis
phone: (403) 298-1575
sbrenneis@collinsbarrow.com