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Author:		Confused
Date:		October 26, 1999
Question:		My husband has worked very hard for the past two years getting the business of his dreams to make it. Things do not look too promising at the moment. I am concerned about the effect that his business bankruptcy will have on our personal affairs. I am gainfully employed and pay all the household bills. I have credit cards in my name only and have a good credit rating. The only things that we jointly have our names on is the house mortgage and I have a spousal card on his business Costco membership. My name is on none of his business documents, nor on his credit cards which he uses for business. Can they take the house? - it has a little more than 40,000 dollars in equity, but the payments are up to date. Do I need to worry?
From:		Shane Brenneis, Collins Barrow Limited
Date:		October 27, 1999
Answer:		It appears from what you have told me that you would not have any obligation for any of the company debts. You did not mention whether the company is incorporated or a proprietorship. If incorporated, then any director will have responsibility for outstanding GST, source deductions for payroll and payroll itself. Also, if any personal guarantees were signed, then these would have to be honored. If the business is a proprietorship of your husband, then this is an extension of him and he would be responsible for any outstanding debt. Also, any personal assets could be looked to for payment of business debt if the company cannot pay the debt. A situation like this can be fairly complicated and an assessment of your financial concerns may be beneficial. To obtain a free assessment , you should contact a Trustee in your area by looking in the yellow pages under "Bankruptcy". If you have any further questions or want to come in for a free assessment to our office, please call or email me using the information below. Shane Brenneis phone: (403) 298-1575 sbrenneis@collinsbarrow.com