Posted under bankruptcy Kitchener
One of the most common questions I am asked is what happens to a spouse if the other spouse declares bankruptcy.
It is a common misconception that if one spouse goes bankrupt, the other spouse must also go bankrupt, because once you are married, you share all debts.
That is not correct.
Whether you are married or not, you are only responsible for debts that you have signed for and agreed to pay. The fact that you are married does not automatically make you responsible for your spouse’s debts. This means that unless you both have more debt than you can handle, it may only be necessary for one spouse to go bankrupt.
Of course if you have both cosigned for your debts, than it may be necessary for both of you to declare bankruptcy. In that case, a meeting with a trustee is recommended to carefully review all of your options.
