Bankrupcty affect common-law spouse?

October 22nd, 2011 by Questions

I declared bankruptcy in Feb. of this year and will not be discharged until approximately November 2012 as this is my second bankruptcy. I have a new common-law relationship. I’m nervous about informing my trustee of my new address and relationship because I’m worried they may ask for her financial information to report along with mine. Should I be concerned about this?

Posted from: Ontario


One Response to “Bankrupcty affect common-law spouse?”

, A licensed trustee said:

You are required by law to keep your trustee apprised of your income, address and household size during your bankruptcy. If you don’t and your trustee finds out they may oppose your discharge and allow a Court to decide whether or not you should be entitled to a second discharge. I wouldn’t chance it, if it were me…

Your spouse has the right to refuse to disclose their income, BUT if they don’t your trustee will cut the government surplus threshold in half. For example, the trheshold for a 2 person household is $2398. If your psouse refuses to disclose then you are only allowed $1199. You do the math.

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