Hello, me and my wife are farming, and the farm is in my personal name. I recently received a notice of intent to realize on the security. I did sign a personal garentee to a laon and it concerns a mortgage. As the farm does not do well, we consider bankrupty. I have my herd as security but because of different reasons the numbers are far from being there. Is this considered fraud, and do they sell all our furniture and house hold to pay creditors?

If a creditor has security, they can realize on the assets if you are not making the payments on the loan. If security is missing, they will be look to you to see where it is and if fraud is proven, the debt can survive a bankruptcy proceeding.

A situation like this is very complicated. The best thing to do is to obtain a free assessment of your complete financial situation. If you want to come in for an assessment or if you have any further questions, please contact me using the information below.

We also have offices in Edmonton (780.414.1133) and Red Deer (403.350.2266) or call us on our toll free number (310-8888). If you do not live in Alberta you can contact a Trustee in your area by looking in the yellow pages under "Bankruptcy".

Shane Brenneis
403.296.2975
sbrenneis@moneyhelp.ca