Comments on: How does bankruptcy affect my spouse in Canada? https://freshstartnow.ca/how-does-bankruptcy-affect-my-spouse-in-canada/ Bankruptcy & Consumer Proposal Thu, 06 Jun 2024 12:01:35 +0000 hourly 1 By: Kathy Lenart https://freshstartnow.ca/how-does-bankruptcy-affect-my-spouse-in-canada/#comment-194 Thu, 06 Jun 2024 12:01:35 +0000 https://freshstartnow.ca/?p=2535#comment-194 In reply to Sara.

Hello Sara
You have to add the income from his pre and post bankruptcy return together to report his full income for the year on your return. If you used his last pay stub, you are likely fairly close.
Regards
Kathy

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By: Sara https://freshstartnow.ca/how-does-bankruptcy-affect-my-spouse-in-canada/#comment-193 Wed, 05 Jun 2024 17:57:59 +0000 https://freshstartnow.ca/?p=2535#comment-193 Hi there, I am self-employed and I always file my taxes separately from my spouse. He hadn’t had his taxes completed by the time I needed to file so I had to use his pay stubs to estimate his income. The problem is that he filed for bankruptcy in 2023, so they submitted a pre-bankruptcy and post-bankruptcy filing for him. My question is which income do I use for him on my taxes, his pre or post bankruptcy income tax forms? I need to update my filing asap with this correct information. Thanks.

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By: Kathy Lenart https://freshstartnow.ca/how-does-bankruptcy-affect-my-spouse-in-canada/#comment-164 Sun, 11 Feb 2024 20:22:50 +0000 https://freshstartnow.ca/?p=2535#comment-164 In reply to Jay.

Hello Jay
A trustee in bankruptcy has an obligation to realize on the value of any assets that you may own that are not exempt. The trustee would look at the value of your house less any secured mortgages/loans/lines of credit less any property taxes owing to determine what the realizable value of the house is. If you own it jointly with your wife, the trustee would be looking at your 50% value. In most cases, you would be able to make an offer to buy back your share of the equity from your trustee. Depending on the value, you may want to speak to a trustee to see if a consumer proposal is a better solution for you. We do not practice in Nova Scotia, so I recommend you reach out to a trustee in your area.
Regards
Kathy

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By: Jay https://freshstartnow.ca/how-does-bankruptcy-affect-my-spouse-in-canada/#comment-163 Fri, 09 Feb 2024 05:36:50 +0000 https://freshstartnow.ca/?p=2535#comment-163 If i go bankrupt and have a mortgage on a newer home with my wife that is always paid. In nova scotia. Would they come after my home?

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By: Kathy Lenart https://freshstartnow.ca/how-does-bankruptcy-affect-my-spouse-in-canada/#comment-136 Thu, 13 Apr 2023 16:32:25 +0000 https://freshstartnow.ca/?p=2535#comment-136 In reply to R. V..

Hello R.V.
In a bankruptcy, the trustee must realize on any assets that have value above secured mortgages and exemptions. If your spouse is on title of the home, the trustee would be obligated to realize on the equity above provincial exemptions. There may be an option of filing a consumer proposal. I do not practice in Quebec, so recommend you reach out to a local trustee to clarify. If you would like a referral, please email me directly.
Regards
Kathy

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By: R. V. https://freshstartnow.ca/how-does-bankruptcy-affect-my-spouse-in-canada/#comment-135 Thu, 13 Apr 2023 15:32:22 +0000 https://freshstartnow.ca/?p=2535#comment-135 If a spouse files for personal bankruptcy and is a co-signatory on the mortgage on the family home in Quebec, will the trustee necessarily come after the spouse’s portion of the equity on the home?

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By: Kathy Lenart https://freshstartnow.ca/how-does-bankruptcy-affect-my-spouse-in-canada/#comment-123 Mon, 26 Sep 2022 02:27:27 +0000 https://freshstartnow.ca/?p=2535#comment-123 In reply to Melissa.

Hello Melissa
You are not responsible for your husband’s debts just because you are married. His bankruptcy will not affect you unless you guaranteed, co-signed or jointly owe the debt. If you are responsible for the debt and unable to pay, I would be happy to review your financial situation in detail and discuss solutions.
Regards
Kathy

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By: Melissa https://freshstartnow.ca/how-does-bankruptcy-affect-my-spouse-in-canada/#comment-121 Sat, 24 Sep 2022 18:01:11 +0000 https://freshstartnow.ca/?p=2535#comment-121 If my husband files for bankruptcy dose that mean I have to it dose it affect me,

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