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Bankruptcy Work for Bank

My boyfriend is planing to claim bankruptcy. I am an employee of the bank in which we have a joint account and line of credit. Would that effect me and my empoyment with my banking institution……if i pay of the line and close our joint accaunt, would that change the situation , after that fact claiming bankrupcy….would it effect me in any way.

Posted from: Ontario

One Response to “Bankruptcy Work for Bank”

Jillian Taylor-Mancusi, Trustee | B.A. | C.I.R.P said...

Since the joint bank account and line of credit is in both of your names, therefore the liability on the line of credit is “jointly and severally liable.” This means that the bank can after you or your boyfriend for payment on the line of credit. If your boyfriend files an Assignment in bankruptcy the bank will most certainly go after you for payment. In that you are going to have to pay the debt anyway you may wish to have it paid off prior to any assignment to avoid any risk of recrimination by your employer. We should note that you should pay it personally not your boyfriend, such a payment by your boyfriend may constitute a preference and result in action by the trustee for recovery.

Assuming that you do not have any liability on other debts and are not insolvent the bankruptcy should not create any problems with your employment situation.