This pair bounced back after bankruptcy – can they afford a condo?
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In this Financial Facelift, The Globe and Mail features a couple that declared bankruptcy in 2010.
Since their bankruptcy the couple has bounced back, benefiting from the fresh start that the bankruptcy provided. They do have some debts remaining – Canada Student Loans that must have been less than 7 years old at the time of the bankruptcy – and a personal loan that they must have obtained since the bankruptcy.
All in all, their budget is in good shape and now the important thing is to stay on track.
It is great to see a real-world example of how bankruptcy can benefit individuals when the situation calls for it and allow them to move forward with their lives as productive members of society.
The advice given in this article is pretty good in that it advises they pay down their existing debt rather than taking on a mortgage for a cottage or a home – however, I don’t agree that they should wait so that they can ” save up a bigger down payment on a more expensive property”. The prudent thing to do would be to save a bigger down payment for the same type of property to ensure they can afford it and retire comfortably.
Did You Know?
Many people who file for bankruptcy get to stay in their home.
In Newfoundland and Labrador, you can keep your RRSPs – even if you file for bankruptcy.
Many people who file for bankruptcy are able to keep their vehicle.
Most bankruptcies are NOT published in the newspaper.
Student loans can be included in a bankruptcy if they are more than seven (7) years old.
A consumer proposal is an alternative to bankruptcy that can only be filed with a licensed trustee in bankruptcy.