Filing Bankruptcy Or A Proposal When I Have Been Layed Off

You can always look at filing for bankruptcy or a proposal, whether you happen to be employed at the time or not. We would need to assess your situation and your spouse's as 2 separate Debtors. Perhaps the bankruptcy or proposal of 1 spouse with the larger debt load will allow the 2nd spouse to manage on their own. The first step would be to make a list of your individual creditors so we/you can assess who needs to look at filing something. The 2nd step is to write out your current budget, and an estimate of your spouse's normal income. Based on that information, we/you can assess what option is best for each of you. If it turns out that bankruptcy is the best option for both of you, you are required to provide confirmation of your income (and expenses) to your Trustee while you are in bankruptcy. There is a calculation called "surplus income" which is based on your actual income during your bankruptcy.  Further information can be found at on our Personal BankruptcyFAQ page. If it turns out that a proposal is the best option, once it has been accepted by your creditors there is no further reporting required. However, the initial proposal may have to be based on what your spouse's income normally is. It will depend on the period of time he feels he may be layed off.   It is a temporary lay-off, or more permanent? The Trustee can better answer this for you once they assess your situation. Donna Carson, CGA, CIRP, Trustee Calgary, Airdrie, Drumheller regions 1.877.500.0792  donna.carson@mnp.ca