When we meet with married couples, we always look at each spouse as an individual and the family as a whole.
How would divorce affect a consumer proposal filed in Ontario?
If you and your spouse separate after filing a consumer proposal, the responsibility for making payments depends on:
- How the consumer proposal is filed.
- What you and your spouse work out between yourselves.
If one joint-consumer proposal was filed then you are both equally responsible to make the payments and you would have to work it out between yourselves to determine who is going to pay what.
There is risk in this scenario. If one of you makes their agreed-upon payment but the other doesn’t – it will affect both.
The other option is to file two separate consumer proposals.
If you file two separate proposals you will each be responsible for your own. As long as you make the required payments, it doesn’t matter what your spouse does.
The composition of your creditors (who owes what) will determine which of these options makes the most sense. It is important to understand that you and your husband are two separate legal entities. You can each decide to deal with your creditors individually.
When you meet with us – you will always meet with a licensed trustee in bankruptcy at NO charge.
We have offices across South Western Ontario plus flexible hours to meet your needs so you don’t have to miss work.
Let us help you get a fresh financial start!