How will my husband`s bankruptcy affect me?

November 1st, 2007 by Questions

My husband and I have a mortgage together and a line of credit. He also has credit card debt that he is unable to pay due to his unemployment. Can he claim bankruptcy without us loosing our house? I also have two vehicles that were given to me from family? Would we be better off if we were seperated?


One Response to “How will my husband`s bankruptcy affect me?”

, Barton Goth GCO Bankruptcy Trustees said:

Firstly, there will likely be very little difference in the bankruptcy if you are living together or separated.

As for the house, the impact on this will depend on where you live. Each province allows a different level of exemption for a principle residence, and the amount permitted varies significantly. If the equity in the house is less than the provincial amount then there will be no impact, but if the equity is greater than somehow your hustbands portion of that equity will have to be realized on the estate. There are many ways of doing this, but the most common is through a second mortgage.

As for the joint debt, you husband will legally be cleared from it, but you will continue to responsible and ensure your payments are continue to be made.

Vehicles are a bit of a different story, and again they depend on provincial exemptions.

The best thing for you to do is to contact a local trustee and review your situiation with them directly.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)