Archive for October, 2006

Question: Can bankruptcy be used lawfully to eleviate financial burden on your family if you were in danger of or close to dying?

Answer: Unless family members have co-signed for your debts, they are not responsible for your debts. If a person dies, the executor of their estate would liquidate their assets and use the funds to pay the creditors. Any remaining funds would be distributed to the heirs. If a living person goes bankrupt, a trustee would sell any non-exempt assets, and the proceeds would go to the creditors, so a bankruptcy in most cases does not protect family members.

We suggest you contact a trustee for further information.

Question: My spouse and I have a joint bank account held at a Canadian bank but in US Funds. The majority of the deposits have been from his paycheque (as a portion of his pay is in US Funds). I have deposited about $300 US from Independent work I have done. The account has over $5000 US. I have all his pay stubs that show each week the amount he received in US dollars. If I file for bankruptcy alone, would his money be taken? Can I take my name off this account and move my $300 into an account just in my name. Any advice is appreciated. Thanks.

Answer: A joint bank account belongs 100% to both parties. In most cases we recommend that you open a new bank account, at a new bank, before filing bankruptcy. Therefore, in your case, yes, you should take your name off the joint bank account, and deposit your funds in your bank account. Your trustee will be able to explain this in more detail.