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joint debt separation with bad credit

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  • joint debt separation with bad credit

    With all the bill collection calls/mail looking for the Ex at the mat home, I am sure his credit rating is in the toilet. Missing a year's worth of child support payments will negatively impact that too.

    So...

    How does joint debt get divided if one party cannot carry the debt themselves? I'm talking about 100k-150k worth of debt. He's liquidated his Canadian assets and works overseas. If you find any canlii cases, send them my way plz. Tx.

  • #2
    bankruptcy

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    • #3
      Originally posted by Links17 View Post
      bankruptcy
      this would only work if both parties declare bankruptcy. no?
      Last edited by DeadBeatDouchebagDad; 08-15-2014, 03:33 PM.

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      • #4
        If the names are on both accounts - yes.

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        • #5
          Bancrupcy would relieve your ex of any equalization payments to you.
          You would still be solely responsibly for joint debt. He will not be responsible for any of his own personal debt.

          Your recourse may be to oppose his discharge as you would be named as a creditor if there is an outstanding equalization payment.

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          • #6
            Bankruptcy and Equalization Claims | Pantalone Family Law in Ottawa Ontario

            Concerning bankruptcy and family law, the above article may help you.

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            • #7
              Originally posted by Once.is.enough View Post
              Bancrupcy would relieve your ex of any equalization payments to you.
              You would still be solely responsibly for joint debt. He will not be responsible for any of his own personal debt.

              Your recourse may be to oppose his discharge as you would be named as a creditor if there is an outstanding equalization payment.

              Respectfully, I do not believe that this is correct^

              Best to refer to the BIA (bankruptcy act - posted on government site). You can also call your local Superintendent of Bankruptcy's office (that's the federal government which oversees bankruptcy). You can email them with your questions.

              Beware of relying 100% on information from a bankruptcy trustee as many of them, in my opinion, are idiots and dispense incorrect information.

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              • #8
                If there are child and/or spousal support arrears, this would take priority over anyone else. The BIA clearly lays this out for you.

                I do not agree that objecting to someone's discharge is necessarily the best thing to do in each and every case. If you object then you have to deal with bankruptcy court and to me, that is just another layer of stress.

                If someone owes you money it seems logical to me that you want that person up on their feet asap so that they can repay what they owe.

                Bankruptcy does not eliminate child or spousal support or arrears as they are exempt.

                After someone goes bankrupt a family court judge often orders INCREASED spousal or child support (to pay down arrears) as the bankrupt has wiped out his/her other debts, freeing them up to pay more to family responsibilities.

                So you have to weigh the benefit/loss of objecting to bankruptcy discharge.

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                • #9
                  Originally posted by arabian View Post
                  If there are child and/or spousal support arrears, this would take priority over anyone else. The BIA clearly lays this out for you.

                  I do not agree that objecting to someone's discharge is necessarily the best thing to do in each and every case. If you object then you have to deal with bankruptcy court and to me, that is just another layer of stress.

                  If someone owes you money it seems logical to me that you want that person up on their feet asap so that they can repay what they owe.

                  Bankruptcy does not eliminate child or spousal support or arrears as they are exempt.

                  After someone goes bankrupt a family court judge often orders INCREASED spousal or child support (to pay down arrears) as the bankrupt has wiped out his/her other debts, freeing them up to pay more to family responsibilities.

                  So you have to weigh the benefit/loss of objecting to bankruptcy discharge.
                  It only includes equalization as I stated above. If the equalization payment is ordered pre bancrupcy you will need to go back to court to revisit ss. Child support is table.

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                  • #10
                    I've been reading up on this subject from various legal sites on the net. From what I understand if the debts are considered as support payments ex. SS or CS including any arrears, they are not discharged by bankruptcy.

                    The same goes for mortgage payments if they are part of a support agreement for the benefit of an ex spouse/children they will take priority. As Arabian said above DO NOT take the trustee's word for it. Case by case, this can be contested.

                    Best thing is to hire a bankruptcy lawyer as this is probably one of the most complicated aspects of family law - not something you would want to self-represent on.

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                    • #11
                      Yeah I'd really be careful about taking the word of a bankruptcy trustee. These people are not chartered accountants. It's easy to become a bankruptcy trustee (check the web for info). License to make easy money for sure. If you want information you can go to 5 different bankruptcy trustees and you will be told 5 different things. Total idiots IMO.

                      Best to do your own independent research at the start. Bankruptcy issues are extremely complicated, particularly when involving a business and family law. Knowing the basic bankruptcy act is helpful and, like family law, the more you bone up on things yourself then the less time (and money) will be spent at the lawyer's office.

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                      • #12
                        I used a lawyer specializing in bancrupcy separate but in conjunction with a family lawyer. Timing is everything when it comes to going bankrupt and keeping your pension while minimizing your exposure to ss. Cs is table.
                        Whith the use of a good lawyer you can maximize the assets that will remain post bancrupcy and create a financial and costly mess for the ex to try and unravel.

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                        • #13
                          ^ well that's honest of you.

                          Bankruptcy does indeed "create a financial and costly mess for the ex to try and unravel."

                          I don't agree with much you have to say but this is an exception.

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                          • #14
                            And I kept my house and pension. Best money I ever spent. Also my kids are with me 100 percent of the time. I'm one of the lucky ones.

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                            • #15
                              ^well then life is good for you is it not? You spent you 2,000.00 for bankruptcy and it put you in a good financial situation. You have no debt so you can afford to pay whatever SS was ordered. Good thing for everyone.

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