Does Filing for Bankruptcy in Nova Scotia Affect My Spouse?

Filing for bankruptcy in Nova Scotia does not directly affect your spouse.

You are responsible for your debts, and your spouse is responsible for theirs. Marriage or common-law does not make a person responsible for their partner’s debts.

However, a bank could ask both spouses to co-sign a loan. If your spouse has co-signed your loan, they are responsible for the full amount owing on the loan if you go bankrupt.

If all of your debts are in your name, your bankruptcy will not affect your spouse's credit rating. The bankrupt spouse, however, might not qualify as a co-signer in the future due to the bankruptcy. Therefore, one spouse's bankruptcy may have an indirect impact on the other.

You should also be cautious 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 likely responsible for the balance owing on the card.

These matters 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 Nova Scotia and want to know how filing for bankruptcy in Nova Scotia will affect your spouse, please contact a licensed Nova Scotia bankruptcy trustee today.