I just got off the phone with someone who called me because she is struggling to pay her debts. She had a good job, but was laid off. In spite of spending 5 hours a day looking for another job, she has been unsuccessful. Now on Ontario Works, her income has dropped to the extent that she barely has enough money to pay for her rent and a few groceries each month. She did some research and thought that maybe bankruptcy might be an option for her. However, a friend of hers told her that she wouldn’t be able to file bankruptcy if she is on Ontario Works. She called us to find out if this is true, and I thought that I would share what I told her with you, our readers.
The source of income does not determine if one can file bankruptcy or not. In this case, being on Ontario Works does not preclude the client who called me from filing personal bankruptcy. Having said that, income from Ontario Works cannot be garnished; this means that even if a creditor sued her, they would not be able to garnish (or take a part of) this source of income. So, the client I spoke to has the option of postponing making any decision about dealing with her debt. Knowing this brought a great deal of relief to her; this meant that she had some time to try and find another job and then resume making payments. On the other hand, if she can’t find a job and the payments pile up to the point where she knows that even if she got a job, she wouldn’t be able to get caught up, she could explore bankruptcy as an option.
If you, or someone you know is struggling with debt, and need some clarification about the options available, please call us at 310-PLAN.
