Personal Bankruptcy Forum

Author:   Carmen
Date:   September 6, 2002
Question:  

My husband served me with divorce papers last August. He makes $90,000/year and I make $50,000. We are still not divorced as he has dragged out the process by refusing to pay child support, refusing to provide financial documents etc. Needless to say, I now have over $10,000 of lawyer's bills on my credit card as well as a $25,000 personal loan that I gave him to help him buy a house (I know - stupid). I also make mortgage payments on the matrimonial home. Both the credit card and the loan are under my name only. If I declare bankruptcy, will he be responsible for the loan/mortgage debt? The divorce is still not finalized and probably won't be for a long time.

 


From:
 

Ann Clarke, Collins Barrow Limited
Date:   September 6, 2002
Answer:   If you file for bankruptcy your husband will still be liable for any debts under his name. Debts under your name only do not become his. If you are both on the mortgage he will still be liable to pay it, but if neither of you make the mortgage payments, the bank will foreclose on the house.

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




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