We often meet with husbands and wives together and always take the time to understand the financial situation of the family unit before providing professional advice. When bankruptcy or a consumer proposal is the best course of action for both of you we consider your ability to make a single filing together, or jointly, instead of two separate filings individually.
The Bankruptcy and Insolvency Act allows debtors (people who owe money) to declare bankruptcy or make a consumer proposal together when their financial affairs are similar; meaning the majority of their assets and debt are held jointly.
Not everything has to be held jointly. Your finances simply have to be similar enough that filing together would not upset either of your creditors.
Filing bankruptcy or a consumer proposal jointly has its advantages. Namely, all of your debts are erased. Neither of you continue to struggle with debt after one spouse completes their bankruptcy or consumer proposal. In addition, the minimum fee can be shared. This increases the amount of money that your creditors receive in a consumer proposal, and therefore the chance of your creditors accepting your proposal, and decreases the amount you pay your trustee in a bankruptcy. A win win situation no matter how you slice it.
We also find that when couples face their financial difficulties together that their road to financial recovery is usually smoother in that they’re re-building their credit together and working towards a new set of financial goals at the same time.
If you believe that you and your spouse may benefit from a free consultation with one of Welker and Company’s licensed Trustees in Bankruptcy then send us an email or give us a call. We’re always happy to learn more about your unique personal financial situation and explain how we’re able to help. You’ll be amazed at how relieving it can be to understand your options and face your financial problems head on. What are you waiting for? You’ve got nothing to lose except your debt!