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  • Threat to go bankrupt

    Thanks in advance for all reponses. I hope someone can help me here. My ex and myself cannot agree on property division and children custody so our battle has been ongoing for months now. We tried mediation and tried negociating but he does not want to budge at all on his position so it lingers...He still pays for half our credit card payments and mortgage payments but last month he stopped paying half of the mortgage insurance and threatened me to stop some other payments if I don't agree to sell our house or buy him out and accept his offer to settle. He also made threats to go after full custody and cs if I dont accept his offer

    Tonight I spoke with my ex about the children and then he brought up the topic of being broke and running out of money again. He said that he talked to a financial counsellor and that he was told people go bankrupt for less than the situation he is in. He said that he will have no choice but go bankrupt because I don't accept his offer to settle and he is running out of money and has his rent and own payments to make.

    Now, the threat of bankruptcy scares me. I cannot make the full payments on the mortgage and credit cards on my own unless we sell the house or I buy him out. My financial institution has approved me for a refinance so I am in a strong position. I absolutely don't want to go bankrupt.

    What will happen to our house and the debts we have in common if he goes bankrupt? What are the implications for me? Should I be scared and accept his offer to settle asap? I'd rather accept his offer rather than follow him in his bankruptcy spirale.

    Advice appreciated thanks

  • #2
    Only thing that I can tell you for sure is that the banks and lendors will come after you if he declares bankruptcy because they are joint loans/credit cards, etc.

    You better figure this out quickly cause if you cannot pay these things on your own and they come after you, then your credit will be affected by non-payment from you as well.

    Good luck

    Comment


    • #3
      In theory, the financial settlement stuff could be considered separately from the child issues. Have you tried suggesting doing the equalization and property division right now, and continuing to work on the child custody and access issues afterwards? He might be a lot more reasonable about the children if the threat of bankruptcy can be lifted. Right now it sounds like he's trying to use the custody thing to speed you up on the money part. It's pretty unfair for him to have to continue to carry the joint debts and mortgage when he's got his own house to pay for as well. If you live in the home and can afford to buy him out, why not settle that part of it right now?

      What are your poor children doing while all this fighting is going on??

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      • #4
        Not sure if this answer your question, I have heard in cs cases that parents (non custodial) that go bankrupt actually have the judgement against them because now that their debt is nulled they have more finances available for other obligations. Hope this helps ; )

        Comment


        • #5
          Why on earth is he paying for your credit card debt?

          It is completely reasonable for him to want to stop paying for a house he will never live in again. Him not budging is completely understandable.

          What exactly is it you wanted him to do in mediation? Keep paying for the mortgage and your credit cards as well as child support and spousal support?

          Comment


          • #6
            If you can afford to buy him out, then do it. Split the credit card dept and have your name taken off the dept he takes and his name off yours. Make sure you get proof from the bank that your name was removed so if he declares bankruptsy after you won't be liable. If he declares now, you'll be stuck with all the debt, and depending on the bank your morgage is with, they might want your house if you miss a single payment.

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            • #7
              If your name is joint with his name then you will be affected as well. They will come after you for monies owing and then you may be in a position to also claim bankruptcy. Why would you not just agree to sell the home?? It will give you closure and allow you to move on with your life.

              If he's threatening bankruptcy you won't be able to get approved for refinancing as it will effect your credit long term and you will be stuck paying for everything.

              Move quick!!

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              • #8
                Bankruptcy has no bearing on Child Support or Spousal Support

                From what my lawyer told me, bankruptcy has no bearing on child support and/or spousal support. It actually may increase the award.

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                • #9
                  Originally posted by atlanticcanadian View Post
                  From what my lawyer told me, bankruptcy has no bearing on child support and/or spousal support. It actually may increase the award.
                  This make no sense, if you have no income and have no money HOW can you pay child support ?

                  Comment


                  • #10
                    Bankruptcy doesn't mean you have no income or money. It means your debt is beyond your means. If someone is living under a bridge and eating at the Salvation Army every night, then yes, they can't pay support, but that is obvious even if they don't declare bankruptcy.

                    Before bankruptcy the debt minimum payments may be beyond the person's means, even before making support payments. After bankruptcy the debt payments are a fraction of what they were, so there is more money in the monthly budget and support payments are made easier.

                    If a party is carrying huge debtload it may be possible to claim undue hardship. If the party goes bankrupt then there can be no undue hardship claim, so the support may be higher.

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                    • #11
                      Thank you Mess for responding with that. I seem to have so much trouble expressing myself; but, only being separated for a year. Divorce isn't final for another month, I guess I am still having emotional problems.

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                      • #12
                        I don't believe your support would be higher as it's based off your income tax return each year..Also you are correct my husband claimed bankrutptcy and you are still obligated to pay your support based off your Notice of Assessment no exception except of course undue hardship which is extramely difficult to prove to a judge.

                        Comment

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