| Author: |
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Cheke |
| Date: |
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May 14 , 2002 |
| Question: |
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In the process of paying for a holiday I borrowed $4000 from
Citifinancial (This totals the debt I owe Citi. to about $11000). I did this
about two weeks ago and am considering bankruptcy. I was wondering if there
will be any issue claiming all this money in the bankruptcy because I only
recently borrowed a portion of this money from Citifinancial. The original
$7000 I borrowed in Dec of 2001.
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From: |
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Ann Clarke, Collins Barrow Limited |
| Date: |
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May 15, 2002 |
| Answer: |
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A bankruptcy Trustee looks at transactions that took place in the 3 to 12
months prior to bankruptcy to ensure there has not been an abuse of credit
or the bankruptcy. If you incurred significant new debt less than three
months before you filed the Trustee will likely report that fact to the
Court, who could require you to repay a portion or all of the amount back
into the bankruptcy estate. Some of the factors reviewed by the Court are
timing of the spending and the reason for it.
Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca
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