|
The effect of bankruptcy on a spouse is a common concern for many residents of Surrey, British Columbia. Most people find the bankruptcy process to be nerve racking on its own, without the added pressures of what consequences their spouse could experience.
Fortunately, usually your debts are your debts alone. Collection agencies are not allowed to pursue your spouse, unless they have co-signed or guaranteed your debt. Anyone including your sibling, your friend, or your co-worker can be pursued for payment if they have co-signed.
If you do not have any mutual debts with your spouse, neither of you will be affected by the other’s credit rating. The only potential effect is that you may not be eligible to be a co-signor in the future, which could affect your spouse if they need you to be one.
In the case of a divorce, matrimonial property is divided evenly. For example, if you owned a house with your spouse and sold it, you would each get half of what it is worth. You and your spouse are both responsible, however, for any joint debts you developed during the marriage. If either of you do not pay your portion of the debt, a creditor has every right to pursue the opposite spouse for the complete amount.
For further information on how bankruptcy could impact your spouse, please contact us today. Our licensed bankruptcy trustees in Surrey, British Columbia will give you an initial consultation free of charge, to go over the bankruptcy process with you, and to help you make the right decisions.
|
