Answer: The fact that you are currently enrolled in a OPD program will in all likelihood reduce your chances of getting a mortgage. In order to get credit you have to meet certain criteria such as; stable empolyment, stable residency, money left over after you pay your bills, a demonstrated ablility to save or make a regular payment, few debts and good payment stats i.e. no NSF’s, late or missed payments etc. etc.

The OPD situation is only one factor in many. Work on the other crteria and the OPD will have less impact. Completion of the OPD program will show you can make a regular payment and once it is over you can put that money toward savings. It should be easier once you have the OPD behind you.

Answer: In Alberta exempt assets are set out in the Civil Enforcement Act. There are no special exemptions for credit unions nor any other financial institutions in Alberta. RESP’s are not protected and may be seized by judgement creditors in settlement of any debts you may owe.

Answer: It is not true. More than a decade ago the Bankruptcy and Insolvency Act or Bankruptcy Act as it was previously called was amended. There used to be a provision in the Bankruptcy Act that “necessaries of life” would survive a bankruptcy. That provision was repealed and it no longer applies. Credit card debts are forgiveable in a bankruptcy even if they relate to food, clothing or other living expenses.

Answer: Yes, tax refunds are considered assets of a persons bankruptcy estate through to the end of the calendar year in which you file a bankruptcy assignment. If a person receives a discharge from bankruptcy tax refunds for future years are unaffected and yours to keep.

Answer: No. Drawing money from credit cards before filing for bankruptcy would be considered fraud, and you would be required to pay it back, even if you went bankrupt.

Answer: For residents of Calgary, Alberta, after the conclusion of your bankruptcy the most important step you can take is to begin saving money. By saving money you will have a significant down payment in the future to buy a car or house if needed.

To rebuild your credit after bankruptcy, one option is to get a secured credit card. You give the credit card company a deposit, and they give you a credit card with a credit limit equal to your deposit. The credit card appears on your credit report, and shows that you have begun to rebuild your credit.

Answer: Yes, surplus income in bankruptcy is based on family income, so if you go bankrupt, your wife’s income will impact your bankruptcy payment.

However, you are not required to pay 50% of her income if she is not bankrupt. Surplus income is calculated for the family, and then you pay only your portion of that income. Here is a link to an example surplus income calculation where there are two people in the family, and only one person is bankrupt.

Answer: Yes, you can file bankruptcy in Calgary even if you have already obtained a debt consolidation loan for your credit cards.

Answer: No, your spouse does not become responsible for your debts unless they co-signed for them. Here’s an article that explains how bankruptcy affects your spouse.

Answer: The answer depends on the value of your houses, and the amount owing on the mortgages. If you are unable to find buyers for the properties, it is possible that there is minimal equity, and therefore you may be able to keep them if you file bankruptcy.

However, it may also be prudent, if the properties are worth less than the mortgaged value, to surrender the properties to the mortgage holder, which may mean the mortgage holder pursues you and your wife for any resulting shortfall. It may then be necessary for you and your spouse to file bankruptcy.

It is impossible to fully advise you without knowing the exact specifics of your properties. We suggest that you get an appraisal for both properties, and a print out from the bank showing the amount owing on the mortgages, and then book a no charge initial consultation with a Calgary bankruptcy trustee.