Bankruptcy Question & Answer Forum - Canada

Author:		AP
Date:		October 9, 2005
Question:		I have incurred a large debt to ccra. We have also incurred a large credit card debt. If my spouse and I file bankruptcy together will she be held responsible for my ccra debt as well as the credit card debts or will she only be held responsible for the CC debts. Thanks
From:		Bruce, Alger & Associates Inc.
Date:		October 11, 2005
Answer:		Your credit card debts are yours and your spouse's debts are theirs. With most credit cards, the secondary card holder has signed an agreement that makes them jointly liable for all debt on the card. As for CRA, you are the only one liable for this debt. The only exception that I am aware of would be if you had transferred assets to your spouse at less than fair value, in which case CRA can assess your spouse for up to the difference between fair value and the transfer price. Bruce Alger phone: (403) 296-2970 balger@alger.ca