Does Filing for Bankruptcy in Ontario Affect My Spouse?

No. Filing for bankruptcy in Ontario does not directly affect your spouse.

You are only responsible for debts in your name. Your spouse is only responsible for debts that they have signed for. Getting married, or living common-law, does automatically make you responsible for your spouse’s debts.

Here's the trap: Banks and credit card companies will often ask a spouse to co-sign for a loan. If you co-sign for your spouse, you are responsible for the entire debt. You are liable not because you are married; you are liable because you signed for the debt.

If you go bankrupt in Ontario and all of your debts are in your name, your bankruptcy will not affect your spouse's credit rating. A note about your bankruptcy does NOT appear on your spouse's credit report. However, because you have gone bankrupt, you will probably not be a great co-signer in the future if your spouse is getting a loan.

You should also beware of joint or supplementary credit cards. You may think the card is only in your name, but if your spouse has a card with their name on it, and if they have used the card, they are probably responsible for the balance owing on the card.

These issues are complicated. It is often difficult to determine if a credit card is a joint card, or just a supplementary card.

If you are considering filing for bankruptcy in Ontario and want to know how filing for bankruptcy in Ontario will affect your spouse, please contact a licensed Ontario bankruptcy trustee today.