Does Filing for Bankruptcy in Canada Affect My Spouse?
Filing for bankruptcy in Canada will not directly impact your spouse. Your debts are your debts; only you are accountable for them. In the event you go bankrupt, your debts are discharged. Your partner is not accountable for your debts.
Plenty of people believe that because you are married, your spouse is easily responsible for your debts. This is false. A strategy that collection agents use when trying to collect from you is to tell you that if you don’t pay they are going to get the money from your spouse. This is a scare tactic because they can only go after your debts.
The only exclusion is if your partner has co-signed or guaranteed your debt.
There might be an indirect impact on your partner in the future should you be trying to get financing jointly. As you restore your credit, you may not be eligible to co-sign a loan or obtain credit.
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