Windsor Ontario Personal Bankruptcy Blog: July 2006: Answers to Personal Bankruptcy Questions

Posted on Sunday, July 23, 2006

Can I file for bankruptcy in Windsor if I work in Detroit?

As a Windsor trustee, I am getting that question asked more of me than I was a few years ago. The Canadian dollar is a lot stronger now compared to the US dollar than it was before. To people who work in the US this seems like a pay cut. A few years ago they were getting $1.50 exchange, now they are getting $1.10 exchange. However, the cost of gasoline and tolls has increased.

Yes you can file for bankruptcy in Windsor if you work in Detroit, but live in Windsor. You can meet with me and we will review all of your options. Chances are that your wage is still good, just not good enough to pay your minimum monthly payments each month. If that sounds like you, then a consumer proposal is probably a good option. If you would like to review your situation in more detail, call or email me a question.

Posted on Wednesday, July 19, 2006

I own a house in Windsor. Should I file a consumer proposal or get a second mortgage?

I own a house in Windsor. Should I file a consumer proposal or get a second mortgage?

The answer is, it depends. If you can obtain a second mortgage at a low interest rate and pay off all of your debt in full that makes sense. However if you are unable to pay off your debts in full, a consumer proposal makes more sense.

I recently saw a couple in Windsor who were trying to decide what to do. A consumer proposal seemed the best alternative because a second mortgage would not allow them to pay off all of their debts. However, they decided to get a second mortgage and realized the next month that they couldn’t afford it and all of the rest of their debt. They then filed a consumer proposal to deal with their remaining unsecured creditors, plus they also have their mortgages to pay. However, if they have filed a consumer proposal initially their total monthly payments would have been lower. It's important to do all of your homework first.

If you would like to review your situation, email a question.