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What if I don’t want to go bankrupt?

My ex (not legally married) has been advised to declare bankruptcy. The problem is there is no significant equity in the house (we both own) where I wish to stay. In addition there is a significant drawn amount of joint personal credit line owed for which a family member of mine is the guarantee. Can he just declare bankruptcy without my consent and how will this affect the liability of the guarantor that signed for the line of credit?

Posted from: British Columbia

One Response to “What if I don’t want to go bankrupt?”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

This is a bit of a tricky situation that unfortunately you don’t have any control over. Firstly, your ex can file for bankruptcy, regardless of what you would or would not prefer. You don’t have the ability to influnce this regardless of being joing on the line of credit. Now if he does file for bankruptcy that will mean he will no longer be responsible for the personal line of credit, but you will. So as long as you continue to make the payments on this line of credit then there won’t be any impact on the guarontor. However, if you fail to make the required payments, then the guarotor would be fully responsible for the debt.