The Rebecca Martyn Bankruptcy Windsor Blog

The answer is that it depends.  It is important to remember that you have duties in a bankruptcy.  Two of the duties are to report your income each month to the bankruptcy trustee and another duty is to give any windfalls (lottery, inheritance) to the bankruptcy trustee.  As long as the savings are not the result of a windfall, and as long as the savings are from your part of your earnings, then you can keep them.

For example, if the savings are the result of an increase in income and you have not paid your required payment as a result of the Superintendent’s Standard, then you cannot keep all of the savings and you must remit the requirement payment to the bankruptcy.

To review your options and to review the duties in a bankruptcy in more detail, call us at 310-PLAN.

I was in a meeting the other day and Betty (not her real name) asked me her bankruptcy would affect her husband.   Betty and her husband are recently married and she accumulated the debt prior to marrying him or evening knowing him.  Someone she works with told her that because they are married he is automatically responsible for her debt.

I let Betty know that this is not the case.  Her husband is not responsible for her debt just because they are married.  He would have had to co sign the debt to be legally responsible for it.   The only affect bankruptcy has on her husband would deal with any assets they own together and family income to determine Betty’s payments .  In her case, they do not have any assets and they earn less than the Superintendents Standard.  As a result, her bankruptcy has no effect on him.

To book your no charge, no obligation consultation, call us at 310-PLAN