Bankruptcy Blog

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Viewing entries tagged with 'freshstartatlantic'

I think that I am "house poor". What can I do?

Being ‘house poor’ is a situation that many home owners find themselves in after a few years of home ownership. Financial institutions provide the funds for purchase of the home but the home is over financed, there may have been unanticipated costs and the monthly income is not sufficient to cover the mortgage, property tax, basic living expenses as well as service credit card and line of credit debt.

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I cannot afford my bill payments but I do not want to lose my house. Should I consolidate my debts with a new or a second mortgage?

Using equity in your home to consolidate high interest debts into one lower payment is an option.  However many people become worse off because they cannot afford the higher mortgage payments, and now have an additional loan secured against their house.

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How can I keep track of my expenses?

Some people find themselves in financial trouble because they find it difficult to properly track their expenses. It is almost impossible to budget properly if you don’t know where you are spending your money.

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I have been told that the Sheriff is coming to seize my assets. Should I go bankrupt?

A creditor who has received a court judgment can decide to register it against real property owned by the debtor and/or attempt to seize personal property that is not exempt from seizure by Provincial law.  A bankruptcy or formal proposal stops seizures and registrations from being done. 

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My elderly mother has a lot of credit card debt but no mortgage on her house. Are there options to help her?

Yes. Presumably your mother wants to stay in her home but is living on a fixed income and cannot afford the minimum payments on her bills as well as regular living expenses and household maintenance.

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My ex-spouse owes support and has just declared bankruptcy? What can I do?

Collecting and enforcing payment can be tough but in some respects the bankruptcy may assist you.  Some debtor’s have to choose between paying their other creditors or the support and choose bankruptcy to free up the cash flow to meet their support obligations.  It is worth noting that:
 
Support payments are not extinguished in the bankruptcy
Support remedies and enforcement can continue against the bankrupt’s income and exempt assets
Participating as a creditor in the bankrupt does not relinquish rights outside the bankruptcy.  Filing a Proof of Claim (attach a statement showing amounts owed and the Order authorizing these payments) will allow you to share in dividends in the estate.
Priority status is given in the bankruptcy (where there are dividends to distribute) to claims arising from (1) lump sum support payments owing (2) periodic support arrears within 12 months of bankruptcy and (3) legal costs pertaining to support.
It may be possible to vary support allowing for changes brought about by the bankruptcy
Consider consulting a family lawyer to assess the impact and suggest actions dealing with matters the bankruptcy will have on non supportSupport payments are not extinguished in the bankruptcy

Collecting and enforcing payment can be tough but in some respects the bankruptcy may assist you.  Some debtors have to choose between paying their other creditors or the support and choose bankruptcy to free up the cash flow to meet their support obligations. Although we are not a law firm, and don't give legal advice, it is worth noting that:

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I have been told I should set financial goals. How do I start?

To get control of your financial affairs you need to set financial goals.  These goals help you know where you stand now financially, where you want to be in the future and can guide you to getting there. 

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Is there anything I can do to prepare for building (rebuilding) credit?

Before attempting to obtain and build credit you should make sure your financial house is in order.  This involves maintaining both a positive life style and establishing positive banking habits.

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My parents are living on a fixed income but using credit cards to supplement it. Is there a way to help them?

Yes. The first step is to sit with your parents and prepare a budget with them. Before deciding what their best option is they need to understand where their money is being spent right now. It is important to determine the expenses they have no choice but to pay; mortgage or rent, prescriptions, etc. From there you can determine what amount is being used for debt and living expenses.

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