Will Bankruptcy Affect My Spouse?
Considering bankruptcy may also cause you to ask the question, “Will bankruptcy affect my spouse or partner?”
The question, “Does bankruptcy affect my spouse or partner?” comes up frequently. The quick answer is “yes” it does, but there is far more to think about. Your spouse or partner will be impacted by your bankruptcy if you have joint debt with them, or if they have co-signed or guaranteed a debt for you. In this instance, your creditor will likely expect them to pay the debt. If your partner or spouse does not make timely arrangements with the creditor, their credit report will be adversely affected.
Another issue to consider is jointly owned assets, assets you own with your spouse or partner. Assets that are solely owned by your spouse or partner are not impacted by your bankruptcy. Your spouse or partner will retain them. In addition, many assets you own jointly with your spouse or partner are statutorily exempt from the law requiring the Licensed Insolvency Trustee to take possession of them. Examples would be household assets and furniture or a jointly owned vehicle worth less than $5,650. However, if you jointly own with your spouse or partner non-exempt assets such as a home, a cottage, an investment property or certain investments, your bankruptcy may impact them and their interest in these assets. It is very important to get full and proper advice about these matters before filing for bankruptcy.
Ask yourself, “Will bankruptcy affect my spouse or partner?” To obtain an answer to this or other questions you may have concerning your finances and your options, we suggest you contact us to arrange an initial no-charge consultation. You will find it very helpful and informative!
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