| Author: |
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Gerry |
| Date: |
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July 25, 2001 |
| Question: |
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I am married and have one child. Both my wife and I have heavy
student loans with a combined monthly payment of $400. Our unsecured
loans are approximately $20000. We have a secured loan, for our car that
we use to get to and from work, for approximately $11000 with a monthly
payment of $400. Our combined monthly net income is $3500. Can we keep
the car if we claim bankruptcy? How much of our net income are we
allowed to keep?
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From: |
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Ann Clarke, Collins Barrow Limited |
| Date: |
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July 26, 2001 |
| Answer: |
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If you claim bankruptcy the car loan is considered to be a secured debt.
You can continue to pay on it and keep the vehicle if the creditor
allows you to do so, which most lenders do. In regard to your income,
the Superintendent of Bankruptcy sets a base level of $2,449 net income
for a family of three. Childcare or maintenance can also be added to
that amount when calculating the payment to be made to the Trustee,
which is usually 50% of income above the base level.
For your further information, unless you and your wife completed school
more than 10 years ago, the student loans survive the bankruptcy.
If you would like additional information and would like to come in for a
free consultation about your options, please call our Alberta toll-free
number 310-8888.
Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca
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