| Author: |
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KB |
| Date: |
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March 30, 2001 |
| Question: |
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I have not done income tax returns since 1993 and I owe
Associates loans of 9K and other credit cards of 8K. I have just finished
school and am seeking employment. I also owe 35K in student loans. I am not
working at all, consequently I have no source of income at this time and am
living on the little I had saved. I have only $200 left and job prospects
are not looking up as yet. If I used household items for the Assosciates'
loan can they take them if I file bankrupcy?
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From: |
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Ann Clarke, Collins Barrow Limited |
| Date: |
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March 31, 2001 |
| Answer: |
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If you pledged security such as household goods to the Associates they have
the right to seize and sell them if you do not make payments. A bankruptcy
could help you deal with your unsecured creditors such as Revenue Canada and
credit card companies, as well as any deficiency balance owing to the
Associates if they seize your furniture. Unless you have been out of school
for 10 years or more your student loan will survive the bankruptcy.
If you have not filed tax returns for several years you should consider
doing so as you may be eligible for tax and G.S.T. refunds, which could help
your cash-flow.
Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca
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