Bankruptcy Basics

	Bankruptcy Basics - Money Problems Radio Show (Opens in a new window. Optimized for Windows Media Player 6.4 and later versions.)
Originally aired on November 12, 2005.

Show Topic:

Bankruptcy is the final option for dealing with serious money problems. On today's show we discuss what it is, and how it works.

Guests:

Douglas Hoyes and Ted Michalos are the founders of Hoyes, Michalos & Associates Inc, one of Ontario's leading personal insolvency firms. They emphasize a "fresh start" when dealing with money problems. They can be reached at www.hoyes.com or, in Ontario, at 310-PLAN (no area code required).

Show Summary:

Lots of people have money problems, which is why over 100,000 people each year in Canada file a consumer proposal or bankruptcy.

Here are the personal bankruptcy basics:

	Bankruptcy is a legal process that gets rid of most of your debts;
	Bankruptcy is not free; there are payments you will be required to make each month to your trustee based on your income, and you will be required to attend two credit counselling sessions;
	Bankruptcy will stop wage garnishments, and in most cases will have no affect on your job
	It’s possible to go bankrupt and not lose your car or even your house;
	Bankruptcy stays on your credit report for about seven years;
	You can find a licensed local bankruptcy trustee from our bankruptcy referral source.

Question of the Week:

Q. If I go bankrupt, how will it affect my spouse? Will she have to go bankrupt as well?

A. In general, bankruptcy does not affect your spouse. Your bankruptcy does not impact on your spouse's credit rating.
However, if your spouse has co-signed your debts, they are still responsible for those debts if you go bankrupt.

Our guests have written an article about bankruptcy and your spouse. To read more on the same topic, please visit Bankruptcy Canada site.          

Don't let your Money Problems overwhelm you; contact a bankruptcy expert today for more information about alternatives to bankruptcy and personal bankruptcy basics.