Bankruptcy Services of Collins Barrow Limited - for Calgary and Edmonton, Alberta

Author:		Lisa
Date:		March 29, 2001
Question:		I live with my boyfriend and he is considering declaring personal bankruptcy. We have no joint credit cards or loans together and he has been advised that his bankruptcy should not affect me or my credit rating. In an attempt to initally try to help him out of debt, I have loaned him money from my own savings to help him pay bills. I have also been covering all of our monthly expenses (rent, utilities, food etc.) Once he declares bankruptcy, will he be able to repay me for any of this? I thought I read that personal debts to friends and family cannot be paid during bankruptcy.


From:		Ann Clarke, Collins Barrow Limited
Date:		March 29, 2001
Answer:		If your boyfriend owes you money you would be an unsecured creditor in his bankruptcy and can file a claim with his Trustee. The Bankruptcy and Insolvency Act does not allow a bankrupt to make payments to unsecured creditors while undischarged. If he chooses to pay you anyway, he must report those payments to his Trustee. Once discharged, he could repay you if he chooses but has no legal obligation to do so. Ann Clarke phone: (403) 296-2972 aclarke@moneyhelp.ca