I became disabled a few years ago, and am currently unable to work. Because of the recent huge cost-of-living increases (rent, food, etc.), combined with the fact that the amount that I receive monthly from my disability insurance company NEVER increases (i.e. no cost-of-living increases ever), I have gone into debt. I owe the bank about $11,000 and Revenue Canada about $6,000. If I were able to return to work at my previous employment, this amount of debt would be trivial. However, I have no idea when (or if) I will be able to return to work. As such, I do not know how to deal with this debt. Should I be considering bankruptcy?
bankruptcy for disabled person with lots of debt
Posted on Friday, May 2, 2008
posted by Questions @ 7:49 pm
1 Expert Comment:
At May 3, 2008 |
7:44 am
, Barton Goth GCO Bankruptcy Trustees Said...
From my perspective the level or type of debt is less important than your monthly cash flow. If you are in a position where there is not enough money coming into allow you to make payments on the debts, then you are in a position where bankruptcy may be a good solution.
However, it also sounds like you are in a position I refer to as creditor proof. Meaning that your income is the type of income that creditors can’t garnishee, you likely have no assets they can seize, so there is nothing they can do to force you to pay your debts (unless you return to work). As a result you may not need to do anythig as long as you can handle the harrassing phone calls and other attemps at collection (although I often find that these phone calls and collection attmepts are stressful, which in turn often has a detrimental impact on health, but that is for you to decide).
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