My wife and myself are considering filing for bankruptcy.

My question is, would we have to give up our house, there is a mortgage and 2nd mortgage, and our car? It is the interest rate on the 2nd mortgage and car that is hurting us.

We both are listed with the credit bureau as poor risks. There is collections listed against my wife but we cannot clear those due to her being off work on long term disability and because her wage has been cut bills cannot be paid. I know that we are always going to be responsible for any government or utility bills, but we just cannot keep up.

I guess a second question would be: Is there anything you could suggest to avoid bankruptcy?

In a bankruptcy, payments on secured debts such as a mortgage or car loan usually continue. If you'd like to give up the car you are able to do so and the remainder of the debt falls into the bankruptcy. Government and utility debts are included.

Other options would depend on the family income and total unsecured debt amount and I'd suggest you contact a Trustee to discuss those options. We can be reached at 310-8888

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