Andrew Raven
Northern News Services

Yellowknife (Oct 14/05) - Nahendeh MLA Kevin Menicoche made a deal with creditors to stave off personal bankruptcy after reeling from financial problems that had him over $160,000 in debt.

"I was swamped," Menicoche said Friday afternoon. "I'm sure I'm like thousands of Canadians who have run into problems."

Court papers outlined a dire financial situation for Menicoche, who made $103,000 during the 2004-2005 fiscal year, his second as a member of the legislative assembly.

In June 2005, Menicoche owed 15 creditors a total of $163,000. His assets totalled $63,000 with $263 in an RRSP, $81 in a checking account, $3,500 in cash and $4,800 in personal property. His pension plan contained $35,870.

The largest claims came from the Canadian Imperial Bank of Commerce, which was due more than $65,000 on two loans. His credit card debt totalled $17,400 and he owed the Canada Revenue Agency $18,791.

According to documents filed with the NWT Supreme Court, Menicoche fell behind in his daily living expenses after he separated from his common-law wife. Travel costs and "clothing expenses associated with his position as MLA," also contributed to his financial problems.

After receiving money from the sale of his home in May 2005, Menicoche made overdue rent and truck payments and gave $1,500 to the bank to settle an overdraft account.

Under the terms of a deal with creditors, Menicoche would make an initial payment of $3,500 followed by 26-monthly payments of $1,800 for a total of $46,000.

"It was a difficult decision to undertake this," he said. "Everybody deserves a chance to re-establish their credit rating."

The proposal was filed June 14 and as of Friday afternoon, no decision had been registered Supreme Court.

Deal accepted

Menicoche said, though, the deal had been accepted by creditors. He will end up paying about 32 per cent of the total debt.

A rejection of the proposal would have resulted in Menicoche's automatic bankruptcy, trustee Darren Crocker wrote in court papers.

Crocker did not return two phone messages seeking comment.

Before Menicoche was elected in 2003, the 44-year-old father of three worked as a technician for Enbrige Pipelines in Fort Simpson.

Menicoche said in court documents his income has averaged about $100,000 annually over the last five years.

After he separated from his wife, Menicoche said he incurred most of the couple's joint debt and he was unable to repay the money.

He said the financial problems have not affected his performance as an MLA.