Question: My husband will be filing for bankruptcy in Ontario soon and we’ve been told by our bankruptcy trustee that since he is secondary on my credit card that we can claim that debt to be covered as well (minimal outstanding balance). She assured us that this will not affect my own credit rating, but this sounds a bit fishy to me. Why, then, would he not be named on our other family member’s debts (line of credit, etc) so that theirs could be wiped out, too? And what affect will this have on my accounts?
Answer: If a husband and a wife are joint on a credit card, and the husband goes bankrupt, the husband is discharged from the debt; the credit card company can no longer attempt to collect money from the husband. However, the wife has not filed for bankruptcy, and therefore she remains fully liable for the entire debt.
More information can be found in our article entitled: Does Filing for Bankruptcy in Ontario Affect My Spouse?