I have an unsecured credit card debt, of 22,000 dollars. I want to declare bankruptcy, but I have a question. If I declare bankruptcy will the creditors take a sum of money that I have in a profit sharing plan where I work? Can I pay this amount of money on my husbands credit card to help lower his debt, before I declare bankruptcy?

The profit sharing program would likely be an asset that would be taken into the bankruptcy. If you collapse it and pay your husband's creditors within one year of filing, the Trustee will either attempt to recover the funds from your husband or have you repay the amount into the estate before you are discharged. Using or shielding assets that should be available to your creditors, or failing to disclose assets and their disposition in a bankruptcy, is an offence under the law.

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