| Question: |
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I am a 67 year old Alberta resident. My income consists of
$5-8000 from my 160 acre cattle operation, also my home, old age pension
and a nominal foreign pension. My wife has no income.
There is a credit line of $100,000 with a bank against my home, fully
used. The home is owned jointly with my wife. I also have accumulated
credit card debts with several credit card companies - kept geeting low
interest rate offers and large credit limits - of some $80,000, all in my
name. All this debt I accumulated in the hopes of making some money in
the stock market to pay off private debts. What if any options are available to me to escape this millstone situation?
Also, a relative of mine has been giving me postdated cheques to assist in meeting my living expenses, the money of which is now being eaten up
by debt payments. Is this money considered 'income' for debt/ bankruptcy settlement
purposes?
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| Answer: |
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If the line of credit is secured by a caveat or mortgage on your house,
you must continue to pay that debt if you don't want to lose the house.
All the rest of the debts (credit cards)would likely be unsecured and a
proposal to creditors may be the best option to deal with them, given
the monthly income you've outlined. The proposal would allow you to
settle the debts, through the Trustee, without having to go bankrupt.
The postdated cheques from your relative would likely not be counted as
income if the payments are being made to help pay debts or living
expenses.
I would suggest you call Collins Barrow to set up a free consultation to
discuss the specifics of your situation. We can be reached at 310-8888
in Alberta.
Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca
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