I am considering filing for bankruptcy due to a personal bank loan that is in collections, which I co-signed for my ex-husband 7 years ago. Upon our divorce(3years ago), my ex-husband agreed to take on the responsibility of making payments on the loan, as it was originally used for a business venture of his that had failed. Now, after all these years, I am getting calls from a collections agency, that a judgement has been made against my ex and that I am still responsible for the debt of $27,000. The problem is that they are unable to locate him as he has moved out of province very inconspicuously. If I file for bankrupcy, will I be protected? The loan was secured against a home we owned years ago, and has since been sold.

If the house was sold long ago then I believe the debt is unsecured and would be discharged by bankruptcy. If the creditor hasn't contacted you or attmepted to collect in 2 years the debt may be stayed by the Statute of Limitations in Alberta. You may want to talk to a lawyer about this before you decide to file for bankruptcy.

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