Coquitlam British Columbia Bankruptcy Blog

should i claim bankruptcy?

2009-07-30T23:32:00.002-07:00

Question: I have:
18,000 line credit
15,000 master card
1,000 over draft
3,000 visa
10,000 car

i earn approx 2,500 every two weeks.
What are my options?

Answer: You have a number of options. Since you are earning about $5,000 per month, it may be possible to repay your debts on your own. Start by making a household budget and cutting expenses to free up cash. If you are not too far behind on your payments, a debt consolidation loan may also reduce your interest payments and allow you to pay off your debts, if you qualify.

If that's not possible, a consumer proposal should be considered. You make one monthly payment to repay your debts. If that's not affordable, your final option is personal bankruptcy.

In your case the biggest disadvantage to personal bankruptcy may be the cost; the more you earn, the more you pay, so unless you have a large family the cost of bankruptcy may be prohibitively expensive. You should contact a bankruptcy trustee to arrange a no charge initial consultation for more information.

What are my options?

2008-11-04T14:09:00.002-08:00

Question: I have mastercard 8500.00
Visa 9,000.00
loc 8,000.00
car 3,400.00
overdraft 1,500.00

situation: income is $2,471/mo
and..I am 67 years old, healthy.
what are my options?

Answer: You have a number of options. First, you could attempt to repay the debts on your own, or perhaps get a debt consolidation loan to lower the interest rate you are paying. If you can't afford the interest payments, a debt management plan through a not for profit credit counsellor is also an option. Under those options you repay your debts in full, at a reduced rate of interest.

If you can't afford to repay your debts in full, a consumer proposal may be an option, depending on what you can afford to pay each month. Your total debts are $30,000, so it's likely that the creditors would accept a consumer proposal for $300 per month for 50 months, or about half of the total that you owe. The exact number you would offer would depend on the size of your family, and whether or not you own any assets, such as a house.

If you can't afford a proposal, a bankruptcy is also an option. Before deciding, you should consult a bankruptcy trustee for more information, and to set up a free initial consultation.

Student Loans and bankruptcy

2008-10-26T11:45:00.002-07:00

Question: My, and my partner's, student loans are in collections with Revenue Canada and Collections BC. Would these be eliminated if I were to declare bankruptcy?

We have no real assets, no expensive furniture, and no newer appliances or electronics. We can barely make payments and are not even keeping up with the interest on the loans. I am on EI due to medical reasons.

Answer: A student loan is discharged in bankruptcy if more than seven years have elapsed between the time you ceased to be a student and you go bankrupt. If your student loans are less than seven years old, they are not automatically discharged in a bankruptcy.

How much does it cost to declare bankruptcy in Coquitlam?

2008-03-07T15:04:00.002-08:00

Question: I am so far behind on my taxes I cannot catch up, and the same with child support although I have tried and still make payments. However, I lost my job last year and have been unable to find another; am on EI for a couple more months. How is the cost of delcaring bankruptcy in Coquitlam calculated as your web site says it is based on income and government regulations?
Also, if I am living common law, does my CL's income factor into this in any way?
Thank you.

Answer: The amount you pay during the bankruptcy period depends on your family income, including your common-law spouse's income, whether they are bankrupt or not. However, their income is only a small factor; the largest cost is based on your income. The calculation of surplus income is somewhat complicated, so we suggest you contact a trustee for a free initial consultation, and they will do the calculation for you, so you can decide if bankruptcy makes sense for you.

Are you self-employed, and falling behind on your taxes?

2007-01-03T09:09:00.000-08:00

Does This Example Sound Like You?
John Smith has worked as a dry-walling sub-contractor for the past three years. In his first year his income was low, and he was unable to pay his taxes. Now he has gotten so far behind and he can't get caught up. Is this your situation?

What Can You Do?
Once you get behind on your taxes, it can be very difficult to catch up. You can try to negotiate a payment arrangement with Revenue Canada (now called the Canada Revenue Agency (CRA)). If that isn't possible, you can file a formal proposal to CRA and all of your creditors. The final solution may be a bankruptcy to give you a fresh start. To investigate your options, click here for more information.