After a very costly divorce, I am considering a 3rd bankruptcy (previous discharges 0/00 and 08/94.) Liabilities are $60,00. Assets are $19,000 including $17,000 equity (my share) in the matrimonial home, and vehicle $1,000. $10,000 of the liabilities are legal fees secured by a lien on the matrimonial home. There are arrears to the MEP (Child Support). It is expected the arrears will be extinguished and home sold by pending Court Order...but possibly not. I am currently unemployed on disability leave - expected to return to work within 6 months, but with huge debts and child support to pay. Discretionary income is about $50 per month. I live very simply. Is OPD a viable option? What affect does bankruptcy now, in this case, have on child support, credit rating, etc. Liabilities include Revenue Canada, credit cards, personal loans, legal & professional fees, utilities, etc. What would a bankruptcy cost in this case? Thanks!

OPD isn't an option for you at this time if you have no income other than what you need to live. From your list of creditors it would appear all debts would be stayed by the bankruptcy except child support, which you must continue to pay. Your credit rating will be affected for 14 year after the discharge. The difficulty is anticipating the type of discharge the Court will give you since it is a 3rd bankruptcy.

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