| Author: |
|
Ann |
| Date: |
|
May 23, 2002 |
| Question: |
|
My husband and I have been trying, unsuccessfully, to consolidate our credit card debt of $35,000. We are still trying but we are considering bankruptcy. The first question I have is will we lose our house - the house
is worth approximatly $170,000 and the balance owing on the house is
$120,000. The other question is my husband is self-employed. We started
the business approximately a year ago and we are still struggling a little
to get on track with the business financially - we are hoping that by the end
of this year the company will be in a good financial position. Our problem
is that we are having a hard time keeping up with out credit card debt.
Should we declare bankruptcy or should we try another route? The big
question is the house and how bankruptcy would affect out business
|
| |
|
|
 |
From: |
|
Ann Clarke, Collins Barrow Limited |
| Date: |
|
May 23, 2002 |
| Answer: |
|
In Alberta you are allowed to keep $40,000 equity in a personal residence.
If your house equity is $50,000 (value less the mortgage)the Trustee must
recover approximately $10,000 from you during the bankruptcy, usually by way
of payments.
While bankrupt, your husband should be able to continue to work as a
self-employed person.
Whether or not bankruptcy is your best option will depend on the family
income and obligations. I would suggest you meet with a Trustee to review
your options. Most Trustees offer a no-charge initial consultation and
Collins Barrow can be reached at 310-8888.
Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca
|
|