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Can I go bankrupt?
Question: I lost my job 8 months back and have been surviving on EI. I have been using my credit cards to help make ends meet. I have used them to buy food, clothes and my utilities. I'm receiving collection calls now and one of the collection agents said I can't go bankrupt because I have used my cards to buy neccessities. Is that true?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 That provision was repealed and it no longer applies.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.
Labels: bankruptcy debts
Posted on Monday, February 08, 2010
posted by Questions @ 12:30 PM
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