Howard Hayes Bankruptcy Cambridge Blog: February 2008: Answers to Personal Bankruptcy Questions

Bankruptcy with a mortgage

Question: If I do need to declare myself bankrupt, I believe I may asked to pay some equity from my house. Would it be worth transferring the house over to my wife's name?

Answer: Unfortunately you can't transfer your house to your wife and then go bankrupt. When you file bankruptcy, one of the questions you must answer is "have you, in the last five years, transferred or disposed of any real estate". In your case the answer would be yes, so if you went bankrupt you would be required to pay back the equity.

We suggest that you get a house appraisal, and a confirmation of the balance owing on your mortgage, and then make an appointment to see us (call 519-622-3773 to set up an appointment) and we can calculate the equity in the house.

If the equity is large, another option may be to file a consumer proposal.

Labels: bankruptcy Cambridge, consumer proposal

Should I Go Bankrupt in Cambridge?

Each week Howard Hayes and I meet with lots of people in our Cambridge bankruptcy office who ask me the same question: "Should I go bankrupt in Cambridge?"

Everyone's situation is different, so for the answer for you, I suggest you give us a call at 519-622-3773, or send us an e-mail, so we can review your unique situation. It"s important that you don't let the stress of collection calls and letters pressure you into a decision until you have all of the facts.

I consider personal bankruptcy to be the last option to consider when dealing with financial problems. Before considering bankruptcy, I want to explain your other options, such as cutting your expenses so you can pay your debts off by yourself, debt consolidation, or credit counselling. If one of these options works for you, great, you won't need to go bankrupt.

If those options won't work, the next option we consider is a consumer proposal. You can read my comments on the cost of filing a consumer proposal . In a consumer proposal we contact your creditors (credit cards, banks, the government, etc.) and work out a plan where you pay a fixed amount each month, and in exchange your debts are eliminated. This is a great option if you have a stable income each month, and can afford to make payments, but have more debt than you can handle on your own.

If you don't have enough income to file a consumer proposal, then you may have to consider bankruptcy. Personal bankruptcy is also an option if your wages are being garnisheed by your creditors, since a bankruptcy will stop most garnishments.

To find out more, give us a call in Cambridge at 519-622-3773, or call us at 310-PLAN, or send us an e-mail, and we will set up a time to meet to review your options.

Labels: bankruptcy Cambridge, consumer proposal

Welcome to the Howard Hayes Bankruptcy Cambridge Site

Posted on Wednesday, February 27, 2008

Bankruptcy with a mortgage

Posted on Saturday, February 23, 2008

Should I Go Bankrupt in Cambridge?