Question: I have some debt that I have been avoiding. Ie. student loans, and some BC provincial medical health card payments. My question is if I get married or enter into a common-law relationship here in Alberta, will my partner/husband become partially responsible for them? What if I declare bankruptcy?
Answer: No, your spouse does not become responsible for your debts unless they co-signed for them. Here’s an article that explains how bankruptcy affects your spouse.
Question: When I file for bankruptcy, what will happen to my properties and mortgages. I have 2 houses both with mortgages and joint with spouse. Will these properties get repossessed or foreclosed. I’ve tried selling them but on this market, no one is biting. I’m considering filing for bankruptcy in Calgary but not sure if my spouse will have to file with me given the properties and mortgages we have together.
Answer: The answer depends on the value of your houses, and the amount owing on the mortgages. If you are unable to find buyers for the properties, it is possible that there is minimal equity, and therefore you may be able to keep them if you file bankruptcy.
However, it may also be prudent, if the properties are worth less than the mortgaged value, to surrender the properties to the mortgage holder, which may mean the mortgage holder pursues you and your wife for any resulting shortfall. It may then be necessary for you and your spouse to file bankruptcy.
It is impossible to fully advise you without knowing the exact specifics of your properties. We suggest that you get an appraisal for both properties, and a print out from the bank showing the amount owing on the mortgages, and then book a no charge initial consultation with a Calgary bankruptcy trustee.
