Question: I am presently on maternity leave so my spouse is the only one working. The debt is piling up and we are now unable to manage month to month. With the value of homes down, the house is now worth less than what we owe. The creditors call all day. Between the calls and taking care of a newborn I am mentally and physically wiped. My health is suffering due to all the stress. We just want to find a way to get our lives back, as impossible as that may feel right now. We desperately need a fresh start. Do you have any advice for us? thank you.
Answer: The answer to your question will depend in part on who owes the debts. If the debts are all in your name, the creditors have no way to garnishee your wages while you are on maternity leave, because you have no wages. You could open a new bank account at a new bank, stop paying them, and simply ignore the phone calls.
Your other option would be to file a consumer proposal or declare bankruptcy to eliminate your debts. However, filing a proposal or bankruptcy costs money, so you would be making payments to protect yourself from creditors that can’t garnishee wages until you return to work.
Our best advice would be to speak to a Montreal bankruptcy trustee to review your specific set of circumstances, and then based on that determine which option is best for you.
