Highly distressed
I am on LTD (tax free fixed income). I am in a common law relationship. We have incurred approximately $30,000 in debt, although approx $10,000 is MY credit line and the credit cards are low interest. I know that I would lose my $9000 in my RRSP. I am the primary card holder on the credit cards, except two. My husband has suggested that I file for bankruptcy, not him, and declare that we are separating/divorcing (which may indeed happen due to his idea!)…I am stressed that he is proposing this either for fraud purposes or because he is considering leaving me. He has a gambling problem, which is also a fiancial stressor. My question: Do individuals actually LIE to a trustee and PRETEND to be single and go bankrupt???,and my second question: If he in fact leaves me, is there ANY WAY I can prevent myself from declaring bankruptcy…like how do I get money from him legally??? (He never pays his debts!)…Like, he said I should “hide” my RRSP, etc. before declaring (against my principles). My income is guaranteed and I do not know when/if I’ll ever be able to work…however, I am distressed over the possibility of losing my R1 credit rating (and he loses nothing and pays nothing!)…Please advise me.
You are correct that providing incorrect information to a trustee would be considered fraud and potentially prevent you from being discharged from bankruptcy. As for whether or not a bankruptcy is even a good idea is questionable as it appears you would only be cleared from a net difference of $1000 of debt. As well, any joint accounts your husband would still be 100% responsible for so that net difference may be even smaller when this is considered.
Other than that you may want to contact a local trustee’s office to discuss this further, but it doesn’t appear as if bankruptcy would be the best fit for you to file (although from the sounds of it it may be more realistic if he consider a bankruptcy as it sounds like he is carrying the bulk of the financial stress).