How Will Bankruptcy in Canada affect my spouse / partner?

bankruptcy canada

All About Bankruptcy in Canada

Should I Declare Bankruptcy?

Bankruptcy Alternatives and Solutions in Canada

How to File Bankruptcy or Make a Proposal to Your Creditors in Canada

Debts Not Discharged from Bankruptcy

Definition of Bankruptcy

Definition of a Proposal

Help - Questions and Answers on Bankruptcy in Canada

Help - Questions and Answers on Proposals to Creditors in Canada

Some Assets Exempt in Bankruptcy

How is My Spouse/Husband/Wife/Partner Affected by my Bankruptcy?

Student Loans and Bankruptcy in Canada

Credit Ratings

Rebuilding Credit After Bankruptcy

Opening a Bank Account After Bankruptcy

Secured Creditors

CRA Income Tax Debt and Bankruptcy

Farmers in Financial Difficulty

Who else can help with Bankruptcy in Canada?

Bankruptcy Canada Statistics

Alternatives to Bankruptcy in Canada

Credit Repair

Consumer Proposals

Debt Management

Dealing with CRA and Bankruptcy

Is My Bankruptcy or Proposal to Creditors in Canada Going to Affect My Husband, Wife, Spouse, Partner?

A party can only be held responsible for repayment of a debt if they signed the original contract, loan agreement or credit card application. If your spouse or partner did not sign the original contract or requested a credit card, they cannot be held responsible for the debt. In Canada, marriage alone does not make you responsible for your spouse's debts.

Regarding credit cards there are two ways in which the second party can be held responsible for repayment of the debt. One is where the individual actually requests a secondary card and signs an agreement saying they accept full responsibility for current and future debt. The other is where the credit card company sends a card out in the second individual's name with the primary cardholder's number and the second individual actually signs and uses the card. Use of the card will hold the secondary person responsible for any past and or future debt. If you want to remove your spouse or partner from your credit card or loan document, you must get confirmation in writing from the financial institution. Without written confirmation there is no guarantee the institution has removed the second party from their records.

Also, responsibility for debt between spouses as listed in a separation or divorce agreement does not legally bind a financial institution or creditor. Unless you obtain concurrence to the division and re-assigning of responsibility of debt from the creditor, they have the right to pursure anyone who signed on the debt.

 

 

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