Which spouse should file Bankruptcy?

February 17th, 2011 by Questions

My longterm boyfriend (common law by now) and I are both in a bit of debt, mine is a little more due to a student loan – total about $25 K, his total about $22K. He makes much more money than I do as it is, especially right now since I\’m on EI due to moving to a small town for his job and finding no job for myself. One of us needs to clear off our debt so we can help the other one out and save for a house before we go another 10 years trying to pay off our debt but ending up acquiring more. Which of us should take the bullet? We have a vehicle in both our names valued at $20K that we intend to keep since we just paid it off. Can that vehicle remain untouched if one person declares bankruptcy? My student loan won\’t be cleared if I do, but if it\’s him then won\’t he have to pay a portion back to the government each paycheque since he makes excess of the allowable amount of $1870 or whatever it is? Is that amount higher since he\’s not single? What should we do?

Posted from: British Columbia


One Response to “Which spouse should file Bankruptcy?”

, A licensed trustee said:

I know you’d like some one to tell you what to do, but we can’t. There are good reasons for both of you to file (and there are good reasons not to file). I think your best course of action will be to meet with a trustee in your area and put “all of your cards on the table”. The trustee will be able to walk through each option for you and then you can decide which one makes the most sense.

While you are doing your homework, you may want to consider a consumer proposal, instead of bankruptcy. It might provide the right answer for both you you….

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