My Spouse filed bankruptcy, do I need to?

If one spouse files bankruptcy or a consumer proposal, it may not be necessary for the other spouse to do anything. You should meet with a Licensed Insolvency Trustee for a complete review of your financial situation. The financial review will include your income, assets, and liabilities to determine your best course of action. 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, that spouse typically files while the other does not. This situation can occur 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 joint, it might make sense for both spouses to file. They can file bankruptcy or a consumer proposal, or one spouse could file bankruptcy and the other spouse could file a consumer proposal. If one of the spouses chooses not to file, they risk being solely responsible for all the joint debt.

A Licensed Insolvency Trustee will provide information on bankruptcy and a consumer proposal, and the pros and cons of each. The couple can make an informed decision about their options that best meets their needs and allows them to achieve their financial goals.

Powell Associates Ltd. is a Licensed Insolvency Trustee. We are experienced, hands-on insolvency practitioners who understand the personal impacts of significant financial stress; 

• You won’t be stuck in an assembly line process. 

• You will expect and receive prompt responses and resolution of issues from our supportive and experienced team.  

• We will review your debt solution options, including filing a consumer proposal or personal bankruptcy. 

• We help Canadians with overwhelming debt get fresh financial starts.  

Once you file a consumer proposal or personal bankruptcy, we deal directly with your creditors on your behalf. Your unsecured creditors are required to stop contacting you or continuing legal proceedings against you. Contact us for a free consultation.  

We offer free consultations to review your financial situation and practical debt resolution options.  Contact us to discuss your situation over the phone, a video chat, or in-person in Saint John, Moncton, Fredericton, Charlottetown, Dartmouth, or Miramichi.