Bankruptcy during divorce

October 1st, 2015 by Questions

My ex and I have been separated for four years now, and I have exhausted all options of money available to me. We have no separation agreement even after multiple times to court. She keeps looking for money and assets that do not exist. I have no savings, minimal RRSP’s, and minimal assets in my possession, nothing of any value to speak of besides a seven-year-old vehicle. She wishes to go to trial to peruse her false claims, but I am unable to continue financially. I have a maxed out line of credit, a $30,000 loan to pay for legal fees to date and spend my weekly pay on housing, feed and support my children who live with me full time. She pays child support but is trying to appeal that also. Will declaring bankruptcy relieve my outstanding debts to date? Will I lose my vehicle during the process? We do not have joint outstanding debts or savings or a common home, we sold the house the first year and paid off that mortgage. Will I lose child support payments from her? Are equalisation payments excluded? What do I do

Questions

One Response to “Bankruptcy during divorce”


October 01, 2015 at 12:12 pm, Desmond West-Chow, CIRP, Trustee said:

I’ll try to answer your various questions as best as possible, but ultimately, since you’re looking for answers in areas that will be affected significantly by additional details, it would be best to sit down with a local trustee to review your situation in detail to gain an understanding of how all aspects of your personal situation would be affected.

Declaring bankruptcy will for the most part resolve your existing debt, although there are some exceptions for things like fraud and the way secured debt may be treated. Your vehicle would be assessed as an asset and its value would be considered in the context of provincial law to determine if it’s your to keep or if you may be required to deal with it in another way. Your child support payments would not be affected by the bankruptcy process, they would just be considered as part of your family income when addressing your required payments in a bankruptcy. Again, speaking to a local trustee will be the best way for you to gather all the necessary information to make an informed decision in regards to your options.

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