One member of an existing legal marriage of approximately thirty-one years is considering bankruptcy due to a recent disability which appears to be long term. The assets must be listed with the Trustee in bankruptcy.The Trustee may sell the assets to pay for the unsecured debts. However these asset were bought and paid for by the husband and wife who both worked and contributed to the purchase of all the assets.Would the assets or the proceeds of the assets be split equally between the wife and the creditor(s)? The only problem may be the fact that the title(s) may have been placed in the name of the husband even though both individuals were employed and contributed to the purchase of these asset.The wife does not want to go personally bankrupt as she feels that the unsecured debts were my debt not hers as she did not sign the unsecured debt nor did she grant permission to enter into this unsecured debt situation.

If the assets are in joint title, the Trustee would be entitled to the bankrupt's half. If the non-bankrupt spouse's name is not on the asset then that person should have no claim to half of the asset. If they feel they are entitled to half, they will need to obtain legal advice on how to proceed.

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