Death and bankruptcy

September 5th, 2008 by Questions

My husband has just been diagnosed with a malignant brain tumor. His treatment will not be curative. If he dies if during the bankrupcy, does his debt then become my responsibility? I have been advised that only he need file for bankruptcy as our accounts are separate and my credit is fine. I have two sons, 16 and 13. Will the bank try to take the house since this loan has both of our names on it?

Posted from: Ontario

Questions

One Response to “Death and bankruptcy”



, A licensed trustee said:

I’m sorry to hear about the tumor…

When someone that files for bankruptcy dies (and it happens more often than you might think) whether or not the debts are discharged (eliminated) depends on how far through the process the person got before they died.

Regardless, the debts can only “become your responsibility” if you were jointly liable for them in the first place. If you were then the bankruptcy won’t protect you at all – if they were not then you don’t need to worry.

Call a local trustee and have a quick chat over the phone – it may make you feel a little better.

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