In situations where a couple (married or common-law spouses) would benefit from both parties declaring personal bankruptcy to get debt relief, most Licensed Insolvency Trustees will aid you in separate bankruptcy filings.
The Bankruptcy and Insolvency Act and Directive No. 2R from the Office of the Superintendent of Bankruptcy do permit joint bankruptcy filings under certain circumstances; however, in practice, spouses are usually advised to file personal bankruptcy separately since individuals complete their own set of “duties” as part of the personal bankruptcy process. Joint filings are more often found when spouses (or other close parties) choose to do a Consumer Proposal together since the requirements under this specialized consolidation are significantly less involved than with bankruptcy.
It is important for spouses to understand that they do not share responsibility to each other’s creditors just because they are married (or common-law), nor are they both required to resolve their debts in the same way. More specifically, one spouse could choose to declare bankruptcy while the other spouse could choose a different remedy or opt to take no action at all. Read more: Am I responsible for my spouse’s debts?
As Licensed Insolvency Trustees we understand that debt and other financial challenges can place a lot of stress on a household and money problems in a marriage can be emotionally charged. We will help you evaluate all of your options to deal with debt so you can end financial stress, make the best financial decisions for you and your family’s future, and get a financial fresh start.
Our friendly, non-judgmental debt experts are here for you – book your confidential free debt consultation now.