Seperating combined debt

October 25th, 2008 by Questions

My wife and I are seperating, and we have a house that has a mortgage close to $390,000, the way the market is we probably won`t make anything or end up taking a loss.
We also have over 60,000 in debt combined.
If we declare bankruptcy does it affect us both equally.

Posted from: British Columbia


One Response to “Seperating combined debt”

, A licensed trustee said:

If you both file for bankruptcy it will likely affect both of you the same way…

Start by making a list of who owes which debt – if you both signed for a loan or credit card then the debt should be placed on both of your lists for its full value. If you really think the house may sell at a lose then you should put some number down for that on both of your lists.

Next you need to determine where each of you is going to live in the future and work out a budget for your new living arrangements (rent, food, gas, etc, etc).

Once you have a budget you should be able to tell if there will be any money left over to deal with your debts. Depending on how much is left you may be able to file a consumer proposal instead of filing for bankruptcy, or one of you may decide to file for bankruptcy while the other one decides to do something else.

Once the budget is ready you should call a trustee in your area to start discussing your options.

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