Joint debts with 1 spouse submitting CP

My wife has been unable to work for the last couple years due to prolonged illness. This has seriously strained the demands on my income supporting a household of 5. I’ve begun weighing our options, and one consideration has been a scenario with her filing a CP, as there are some debts thay are being carried solely in her name. However, my question is how would her filing a CP affect our joint unsecured debts? Would I be held completely responsible without also filing for a CP as well?

Posted from: Alberta

One Response to “Joint debts with 1 spouse submitting CP”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

You are correct, if your wife files a consumer proposal this will result in you being solely responsible for the joint debts. Now depending on the size of those joint debts you may need to look at filing a joint consumer proposal, that way you could settle both of your debts and likely make it easier to cover the living costs associated with a family of 5. For an idea of what type of offer you would need to make, whether a joint proposal is warranted I would recommend you contact a local trustee and they will be able to quickly walk you through the proposal process and determine if it will be able to assist with your current predicament.