Question: My husband just found out his mother is over 26,000.00 in debt.She is getting approx. 1600.00 pension. She has filed bankruptcy in Saskatoon about 11 yrs ago. Credit cards that come in the mail are her downfall. Any other options besides selling her house and auctioning her belongs to pay of this debt?
Answer: She has three logical options:
First, as you suggest she could sell her house and belongings to pay off the debt.
Second, she could file bankruptcy again. Because this will be her second bankruptcy, she is not eligible to be automatically discharged in nine months, so that may not be a great option.
Third, she could file a consumer proposal, which is an alternative to bankruptcy. She would make a payment each month for up to five years to settle her debt. A proposal only makes sense if, on her fixed income, she can afford to make payments each month.
To determine which option is best for her, we suggest she discuss these options with a bankruptcy trustee.
