 |
| Author: |
|
Carson |
| Date: |
|
April 7, 2003 |
| Question: |
|
My husband has considerable debt, mostly credit cards due to keeping his business going. If he was to claim bankruptcy what would happen to our house which is jointly owned? We owe about $117,000 and the value is approx. $160,000. Also what can we do to stop the interest on the cards till they are paid off? Can we try to settle on a lesser amount that what's owing now? He owes approx $50,000 in cards. We have already been turned down by the bank to get a loan to cover them.
|
| |
|
|
 |
From: |
|
Ann Clarke, Alger & Associates Inc. |
| Date: |
|
April 7, 2003 |
| Answer: |
|
In Alberta, you are allowed to claim a $40,000 exemption for a personal residence. If your husband files for bankruptcy the Trustee would be required to recover 1/2 of any equity over $40,000. In bankruptcy, creditors cannot add interest after the date you file and you do not pay on the credit cards. A proposal would allow you to setle with your creditors for a lesser amount. I'd suggest you make an appointment with a Trustee for a free consultation to review your options and how they will affect you. Alger & Associates can be reached tollfree at 310-8888 in Alberta.
Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca
|
|
