Bankruptcy Question & Answer Forum - Canada

Author:		Karen
Date:		December 5, 2005
Question:		My ex husband filed post action to reduce child and spousal support. He claims insolvement and subsequently in the process of filing bankruptcy. My ex husband has approx 20 credit card cards debts charged in excess of $90,000.00 in the past 12 months. I believe my ex is intentionally suppressing income and zealously charging debts. My question is if my ex's 20 credit debts of $90,000.00 are forgiven, can this money be treated as income over the last year, because he will not be required to repay this loan?
From:		Bruce, Alger & Associates Inc.
Date:		December 5, 2005
Answer:		Karen, Your question is one which only your matrimonial lawyer can answer for sure. However, what I can tell you is that generally debt forgiveness of personal debt is not considered income. Further, as you may or may not be aware, alimony and maintenance arrears are not discharged by a bankruptcy. Bruce Alger phone: (403) 296-2970 balger@alger.ca