SummerTO2 asks on Reddit: Hi Victor! Can you perform a bankruptcy assessment of my situation? I have a total of more than $50,000 debt from credit cards and line of credit. My wife and I don’t have car nor home mortgage. I am unemployed right now (but no EI) and my wife is on EI. I am planning to file for personal bankruptcy. How would you assess my situation? And is my wife affected when I file for bankruptcy? We live in Ontario. Thanks!
Victor Fong, Licensed Insolvency Trustee in Toronto, Canada replies:
Based on the information you’ve indicated in your post, if:
- You’ve never been bankrupt before;
- your household consists of just yourself and your wife (i.e., no dependent children); and
- your combined average net monthly income over the next 9 months will not exceed $2,601 per month
then your bankruptcy will last for 9 months and you’ll be discharged at the end of that 9 month period.
Your wife won’t be affected by your bankruptcy (I’m assuming that you are the only person in the household with financial problems). However, if she has any joint debts with you, those creditors would look to her for payment.
Regarding cost, most trustees will charge a flat fee that can be paid in 9 monthly instalments. In the Greater Toronto Area, fees will generally range from $1,800 – $2,000, paid over 9 months.
Hope this helps!