common law relationship and bankruptcy

March 21st, 2011 by Questions

If in a common law relationship, one person claims bankruptcy, what are the effects on the other person. There are no loans or mortages or connections financially.

Posted from: Saskatchewan


One Response to “common law relationship and bankruptcy”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

The filing of a bankruptcy
really doesn’t have any direct impact on your common law partner unless they have signed on any of your debts. This means that if they haven’t signed they are not really part of your bankruptcy, they are not responsible for the bankruptcy, nor is their credit impacted.

Now how your bankruptcy unfolds may be impacted slightly by the presence of a common law partner (i.e. the cost of bankruptcy is a function of your percentage of the household income and the household must participate in the keeping of receipts and preparation of the income and expense statements), but this is really only indirect involvement.

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