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seperate debts

Not sure if this is the right category or not. My wife and I are not separated but our financial situation is.

I have about 50K in unsecured debt and an additional 450K in CRA debt. My income is about 20K per year.

My wife has about 10K in unsecured debt and that’s it. Her income is almost 100K per year.

How would it affect my wife if I declared bankruptcy? Would her income become part of my bankruptcy?

Posted from: Manitoba

One Response to “seperate debts”

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

You really should talk to a local trustee about this. Technically speaking you are supposed to disclose your spouses income and it is used to determine the cost of bankruptcy. However, there is a section in the act that provides an allowance for those who refuse to disclose their spouses income. This changes the way the cost of bankruptcy (more specifically the surplus income) is calculated, but in your case it may be beneficia. So contact a local trustee and have them walk you through these calculations.