Does my bankruptcy affect my spouse?
Filing for bankruptcy in Canada does not directly affect your spouse. Your debts are your debts; only you are responsible for them. If you go bankrupt, your debts are discharged. Your husband or wife or common-law spouse is NOT responsible for your debts regardless of scare tactics by collection agencies or other creditors.
The only exception is if your spouse has co-signed or guaranteed your debt. Your spouse is liable for the debt, along with you, not because they are your spouse, but because they have signed for the debt. (Ex: credit cards on same account, joint loans and mortgages, etc)
If all of your debts are solely in your name, your bankruptcy will not affect your spouse's credit rating. However, the bankrupt spouse may not qualify as a co-signer in the future due to the bankruptcy.
Elderly and bankruptcy
Retired individuals finding themselves buried in debt is becoming increasingly popular in these economic times. The chances of increasing income becomes quite difficult after retirement therefore, getting in touch with an experienced bankruptcy specialist can incredibly reduce stress and financial burdens at this crucial age. Under the new rules RRSPs are exempt from seizure in a bankruptcy. You will be able to keep your RRSPs, with the sole exception of any contributions made in the year prior to claiming bankruptcy.
