Will I Have To Go Bankrupt Or File A Consumer Proposal If My Spouse Does?
If one spouse files for bankruptcy or makes a consumer proposal, it may not be necessary for the other spouse to file. To determine the best course of action it is best to meet with a Licensed Insolvency Trustee to complete a thorough review of your financial situation including income, assets, and liabilities. Depending on the specific circumstances the trustee may recommend a variety of solutions which may include:
- Restructuring debt through your financial institution by way of a consolidation loan.
- Where one spouse holds all or most of the unsecured debts, one spouse typically files while the other does not. This is often the case when people come into a relationship with their own debts or when spouses keep their finances separate.
- When all or significantly all of the unsecured debts are jointly held, it might make sense for both spouses to file. In this circumstance, both spouses can file for bankruptcy or make a consumer proposal or one could file for bankruptcy and the other a consumer proposal. If one of the spouses chooses not to file they run the risk of getting stuck with any joint debt.
Whichever option is ultimately chosen, the trustee will provide information on bankruptcy and consumer proposal, and the pros and cons of each. The couple can then make an informed decision as to which option best meets their needs and allows them to achieve their financial goals.
Powell Associates Ltd. is a Licensed Insolvency Trustee (LIT) focused on providing debt settlement, proposal and bankruptcy solutions for individuals and businesses. We offer free consultations to review your personal financial situation and practical debt resolution options. Contact us to discuss your situation over the phone or book an appointment to meet us face-to-face in Saint John, Moncton, Fredericton, Charlottetown or Dartmouth - it's your choice.