bankrupcy and separation

December 13th, 2009 by Questions

I have been to a trustee and the paperwork is ready for me to sign. I want to know I am making the right decision. I lost my son in an accident 5 years ago and I have suffered from depression ever since. I have not been able to work and have been approved for cpp. My husband left me about 1 year ago and he has a great job. We have alot of debt and he had been giving me money to pay for the loan and mortgage and I was keeping my credit card payments up as best as I could. About 2 months ago he quit giving me money and I cannot afford to keep up with the debts. The house is mortgaged for more than its worth and he told me he was going to declare bankruptcy. My tustee made it very clear to me that I would have to make a decision about the house as I have never missed a mortgage payment. I cannot afford to keep the house with my income. I guess my question is what if he is not declaring bankruptcy? When we remortgaged the house we paid off his truck. My car was used as security for the consolidation loan. Is he going to be responsible for the joint loan and the mortgage payments?

Posted from: Ontario


One Response to “bankrupcy and separation”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

Being unfamiliar with the specifics of your situaiton it is difficult to offer much of an opinion. But fro mwhat you have said, the key thing that jumped out at me is that based on your current income you can’t afford to continue down the road you are currently on. So something must be done to put things back into a position where you can afford it. Is that a bankruptcy, it really depends on your cash flow, the more cash available after your cost of living the less likely a bankruptcy is needed.

In terms of the joint debt, if your ex doesn’t file for bankruptcy and you do, he will be responsible that those debts be paid in full.

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