My ex-husband is declaring bankruptcy, will this affect me?
July 24th, 2014 by Questions
Hi, I am separated from my husband and we have the legal documents. He has to pay spousal support on a monthly basis. He has lost his job and has informed me that he will be declaring bankruptcy for the 2nd time in his life. I am worried that this will affect me financially. Can you tell me if it will or not. I live in Ontario and he is in Saskatchewan.
Posted from: Saskatchewan
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July 24, 2014 at 7:25 am, Jillian Taylor-Mancusi, Trustee | B.A. | C.I.R.P said:
The fact that your former husband has lost his job will likely effect you more than the fact of him filing an assignment in bankruptcy. If he has lost his job does he qualify for Employment Insurance, does he have other sources of income? These are all questions that should be asked. If he does not have any source of income it may be difficult for him to pay you your spousal support.
In a bankruptcy your former husband will be required to complete monthly income and expense reports. These reports will state his income as well as any non-discretionary expenses he may have. These non-discretionary expenses include the support payments being made to you. You have not indicated whether or not he is behind in his spousal support payments to you. If he is in arrears in his spousal support payments, these may be a debt not discharged by the bankruptcy. Section 178 (1) (c) of the Bankruptcy and Insolvency Act specifically addresses an agreement for maintenance and support of a spouse, former spouse etc. Depending on the specifics of your situation you may have a preferred claim in his bankruptcy. You may want to review your court order as there may be details in the order with regard to his payments varying or fluctuating should his income change or fluctuate. If you think you are owed funds you should contact his trustee in bankruptcy about completing a proof of claim form in his bankruptcy.