How many disbursements are allowed on the same debts. For instance, if a consumer payment has turned into a bankruptcy due to unemployment and that bankruptcy is released and then a creditor decides to chase the spouse and the spouse is forced into bankruptcy on the same debts already released, we're into three different payment plans and two bankruptcies on the same debts. Where does this end. After the first release the second? What portion of the debt gets sent to the creditor and when. For us this has been going on for over seven years and all the creditors say they haven't received a dime from the trustee. In fact the debts are long ago written off according to some creditors. What's going on here?

Bankruptcy/proposal stops creditors from collecting from the person who filed but not any co-debtors or co-signers. Once your co-signing spouse filed a bankruptcy the creditors were stayed from collecting against either of you. Creditors receive dividends or payments based on the funds available in the respective estates. If you have a question about your bankruptcy you should contact your Trustee for information.

Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca