-- David, I have a friend that had an automobile accident, while impaired, and even though she beat the impaired charge in criminal court her lawyer has advised her that she would lose in civil court against ICBC. The charge is undue care and attention and apparently ICBC says that her car insurance does not apply to the liability she has with respect to the injuries suffered by the other parties in the accident, she hit a car from behind. So she will be on the hook for most of her life paying ICBC. The alternatives are either a settlement with ICBC, apparently they do not want to settle with her or bankruptcy which seems to be the plan at the moment. Had she not learned her lesson from this I would not be writing to you, but I believe she has, and I am wondering if you have any advice about mitigating the effects of bankruptcy on an individual or other advice. She is 34 or so, recently divorced, works at a XXXXXXX shop and has at present a good credit record. Thanks David for the service that you provide with your emails and site, All the best XXXXXX -------------------------------------------------- David Replies: I am not a lawyer or a bankruptcy trustee and can only comment on what I have seen over the past 40 years. My files are full of people who should have gone bankrupt and did not do so. I really cannot think of anyone whose life or reputation was destroyed by going bankrupt. The reality is that when you have a debt that cannot be paid and you are falling behind on everything, any financial reputation you had is toast already. I could name dozens of people who pulled the plug and are now living happy, fulfilling and productive lives. So my number one suggestion is that if there is no way out, pull the plug - SOONER rather than later! Large organizations like the CCRA and ICBC are not interested in settling. If ICBC "settles" with your friend, she will tell others and "EVERYONE" else will want to settle. Organizations like the Bank of Nova Scotia will NO LONGER ALLOW her to keep a financed car. This is true even if she has never missed a payment. So, she should be prepared to payout the car somehow or have a mother, father, brother, etc., take over the payments for her. On the other hand, in BC if she owns a $5,000 or less car, she will be allowed to keep the car. If she owns up to $12,000 (in Victoria and Vancouver) ($9,000 in the rest of the province) equity in a house or condo, she is allowed to keep that. She can keep up to $10,000 of tools of her trade (scissors,etc.), $4,000 worth of household goods and effects, clothing, etc. up to a total of $30,000 to $32,000 in total. Alberta, Manitoba, Saskatchewan and other provinces and states all have different retention levels. You and your friend can find out everything you want to know about bankruptcy including papers to fill in and take to your trustee at http://www.bankruptcycanada.com/ --- Outgoing mail is certified Virus Free. Checked by AVG anti-virus system (http://www.grisoft.com). Version: 6.0.471 / Virus Database: 269 - Release Date: 4/10/03
