July 9th, 2010 by Questions
I want to take on my spouses debt when i declare bankruptcy. So he doesn`t have to. Can I do that?
Posted from: Ontario
July 12, 2010 at 10:01 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
Unfortunately you can’t simply elect to take on your spouses debt. When your spouse signed on these debts he essentially said that he would make sure they were paid in full, regardless of what happens to him (i.e. death, disappearance, bankruptcy etc.).
The only way you can really accomplish this is if you have the creditors agree to remove his name of the loan. However, creditors are very rarely willing to do this as the result is they are in a much more risky position and the banks often are not interested in increasing their exposure to the risk of default.
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