Bankruptcy Services of Collins Barrow Limited - for Calgary and Edmonton, Alberta

Author:		J. Mullaney
Date:		July 29, 1999
Question:		I owe several thousand dollars on credit cards as well as $10,000 owed due to a penalty imposed on my for receiving Unemployment Insurance Benefits when I was employed. I am currently not employed and have no way of meeting these debts. I own a home with only $5m dollars equity and do not own a car. Can I declare bankruptcy and will the above debts be wiped out or will I still owe them and only end up paying them over time? Is the gov't debt (penalty) bankruptcy eligible?


From:		Shane Brenneis, Collins Barrow Limited
Date:		August 9, 1999
Answer:		It appears form what you have described that you are insolvent and would be eligible to file bankruptcy. The credit card debts are dischargable however, your EI debt may not be. EI takes the position that if you incurred an overpayment and it was your fault then you committed fraud and any debt incurred fraudulently will survive a bankruptcy. However, it is only the overpayment and not the penalty that survives so it will depend on the makeup of the debt. You should contact a Trustee in your area to attend a free assessment of your financial situation. If you have any further questions or want to come in for a free assessment, please call or email me using the information below. Shane Brenneis phone: (403) 298-1575 sbrenneis@collinsbarrow.com