Dealing With One Credit Card Only That Is Over The Limit

2009-02-05   minute read

Hello, I think the short answer to your question is "No". General the various types of filings under the Bankruptcy and Insolvency Act ("BIA") apply to all unsecured creditors and you don't get to "pick and choose" which creditors the filing applies to. In addition, all of the alternatives under the BIA require us to take all of your credit cards away from you and there is an implication in your question that you wish to retain and continue to use your other credit cards. It is possible to file a proposal to your creditors under the BIA that treats different classes of creditors differently - so you could make the one creditor that is over the limit a different class. However, to get such a proposal approved would require each of the classes of creditors to approve the proposal and creditors don't usually like to be treated differently. And, we would be required to collect all of your credit cards. If your issue is that you just want to pay your credit cards off over time you might also consider an "Orderly Payment of Debts" filing. This allows you to pay off all of your unsecured debt with one monthly payment and it does get interest rates reduced to 5%. It also, however,  requires you to lose your credit cards. Please do not hesitate to call me if you wish to discuss the above. Ian Schofield MNP Regina 306-790-7904

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