I currently am on WCB, soon to be looking for a new job as my current employer informed me they will not be renewing my contract at the end of April. I owe $4000 in credit card debt, I owe $4000 on a car that isn't even worth as much. I owe $1000 to a financing company that for my computer which I make payments to every month. And my telus bill is adding up as I cannot make the full payments. I have been making partial payments and it keeps getting higher. I was in a car accident last year so my insurance premiums will be increasing substantially this year. And my boyfriend and I are hoping to buy a house within the next year or two. First... which of these debts are covered in bankruptcy? Second... if my phone bill is covered, do I still keep the service? Third... if the financial company is covered, do I lose my computer? Fourth, how will this affect my credit as far as a mortgage in the near future is concerned? I want to start fixing my credit, but I can't until I get this debt under control.

In a bankruptcy, the credit card and Telus debt would be covered. The car and computer loans would have to be paid if you wanted to keep the assets. If you were willing to give up the car and computer the remainder of the debt would be part of the bankruptcy. Telus may charge you a deposit if they have a debt in the bankruptcy. Finally, a bankruptcy will have a negative effect on your credit rating and would affect your ability to obtain a mortgage in the near future.

Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca