- Bank Loan
- Bankruptcy
- Budget
- Children's Future
- Consumer Proposal
- Credit Cards
- Credit Counselor
- Credit Report
- Credit Score
- Debt
- Debt Collectors
- Debt Consolidation
- Early Retirement
- Financial Freedom
- Financial Literacy
- Financial Problems
- Financing For Renovation
- Gambling Debt
- Holiday Debt
- Income Tax Debt
- Investment
- Money
- Money Management
- Money Saving Tips
- online fraud
- Online Scams
- Owing A Car
- Pawnshop loans
- Payday Loans
- Refinance
- Running Out Of Money
- Save Big Money
- Saving Tips
- Secure Retirement
- student loan
- Tax
- Uncategorized
- Wage Garnishment
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- November 2015
- October 2015
- September 2015
- August 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
Will My Bankruptcy Affect My Spouse?
If you are married and need to claim bankruptcy, you may be concerned as to how your assignment into bankruptcy will affect your spouse.
If your spouse is joint on a co-signed debt, then a creditor can legally pursue your spouse for repayment of that debt even if you file for bankruptcy. The only assets included in a bankruptcy are those assets that you own. If assets are owned jointly with your spouse, then it is your potion / percentage of the assets that will be considered.
Your trustee needs to be completely aware of any joint assets that you own so that they can all be reviewed on an individual basis. Any assets that are in your spouse’s name are not affected by your bankruptcy; those assets are theirs and will remain so.
If you claim bankruptcy, your spouse does not have to. They can decide how to proceed based on their personal finances. There are times when it makes sense for couples to file jointly, and there are other times when it is more reasonable for only one partner to file for bankruptcy or a consumer proposal. This is something that should be thoroughly discussed with a trustee before moving forward with any final decisions.
When you choose to file, all of the debts that are in your name will not affect your spouse’s credit or their personal debt obligations. More importantly, your bankruptcy will not appear on your spouse’s credit report because their credit report only contains information about them personally.
If you file for bankruptcy, any debts that you and your spouse have jointly will be the sole responsibility of your spouse. Your spouse will be automatically obligated to repay that debt fully even though you are in bankruptcy. If you and your spouse have a lot of joint debts, you may consider the need for both of you to file for bankruptcy so that all of the family debts are handled.
If you and your spouse have separated or are divorced, your spouse is still responsible for any debts that you incurred during your marriage as long as you both signed the loan paperwork. For more information or help on where to go from here, contact our team today.