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divorce and bankruptcy options

My wife and I are in the process of a divorce. Property/debt has not been divided. My wife is threatening bankruptcy.No net assets only net debt ON JOINT CREDIT.All loans paid up to date no late payments. How can I prevent her from dragging me into bankruptcy on the loans that are cosigned with me. I have worked hard to stay afloat and do not want to go bankrupt
with her. What are my options

Posted from: Alberta

One Response to “divorce and bankruptcy options”

A licensed trustee said...

You are under no obligation to file for bankruptcy just because your (ex)spouse does. Unfortunately, you will become 100% liable for any/all of your joint debt. As long as you continue to make the required payments on the debt you credit should not be affected – if you are unable to make the required payments then the creditors will likely pursue their normal collection procedures against you. Sorry, but when you apply for joint debt, both parties become responsible for the entire debt.

You can try dividing the debt and asking the lenders to issue new loans/lines of credit/credit cards in each of your names (rather than jointly), but most lenders won’t agree to this…