My husband and I currently have about 99,000 in debts. 50,000 of the cebt is the result of a failed business venture from 2004, but only about 11,000 is under the business name, the rest is from our personal line of credit. Our business debt is to visa, our personal debts to visa, and two credit lines. We own our home with less than 25,000 equity and a recreational property valued at approx. 20,000. we lease a vehicle through the business and own a second car valued at approx 4000.00. My husband is paid as a consultant through his business at 60,000 per year and our debt payments per month are about 1800.00 We are floating payments to cover our basic expenses which run aboiut 3800.00 per month. It is difficult to see what other option there is than to claim bankruptcy. We are meeting all payment requirements and are not in arrears at this time. From your experience what would you suggest? Would we claim joint bankruptcy and would we also bankrupt the business? Would we be able to keep the vehicle? The rec property? The house? Do we have to qualify for bankruptcy and if so, do we? Is there a fee for the trustee and if so how is it determined? I realize this is more than one question, and perhaps we will need to discuss this further. I greatly appreciate your assistance.

Your options would likely be a personal proposal or a bankruptcy. Unless there are assets in the business it wouldn't need to be bankrupted, you'd just have to close it. In Alberta, you are personally allowed to keep a vehicle worth up to $5,000 and a house with equity up to $40,000. The recreational property would not be exempt and it may need to be sold to help pay creditors. There is a fee for both proposals and bankruptcy and it depends on which option you choose, the total amount of assets recovered and work performed by the Trustee. I'd suggest you make an appointment for a free consultation to discuss all your options and know the process so you can make an informed decision. We can be reached in Alberta at 310-8888.

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