Bankruptcy Question & Answer Forum - Canada

Author:		Anonymous
Date:		Dec 17, 2007
Question:		I have been separated for 2 years and left with a huge debt incured by my ex wife. However, I had been paying down the debt for the past two years and doing fine doing it. I decided to file a consumer proposal so that it could be managed by the Trustee. Once the proposal had been agreed to and filed, all the debts in my ex wife's name was not recognized by the creditors and the interest is continuing to accumulate on the debts that she is responsible for. I am going to sell my house and deal with the debts and pay them all of. The total debt in my name only is approx 30,000 and my ex wife about 35,000. I really do not think that the the trustee company with whom I had filed the connsumer proposal with is working for my best interest on my behalf and I have very little confidence in that trustee company based in Edmonton. My question is can I legally cancel the proposal agreement and negotiate with the creditors personally and pay off both outstanding debts of both my ex wife and I?
From:		Alger & Associates Inc.
Date:		Dec 17, 2007
Answer:		If the debts were in both your name and your ex-wife's name, she would continue to be liable for them following the filing of your consumer proposal. If the debts were only in your ex-wife's name, they would not be included in your consumer proposal as it would be only your ex-wife who would be liable for them. I would speak with your Trustee to determine the situation with respect to the debts involved. If you have concerns with respect to your Trustee, you can also contact the Office of the Superintendent of Bankruptcy, whose contact information can be accessed via the following link: http://strategis.ic.gc.ca/epic/site/bsf-osb.nsf/en/br01003e.html#Alberta Vanessa Grant phone: (403) 296-2977 vgrant@alger.ca