First of all, credit ratings are individual specific, that is, they only report the history of one person. The spouse's name may appear on the credit rating under the information section. Therefore, the filing of personal bankruptcy or a consumer proposal by one spouse will not directly affect the credit rating of the other spouse.
The issue of concern is what debts are joint or co-signed. This would include any secondary credit cards on the main account. If the debts are joint, that means both spouses are responsible for the debts, jointly and severally. If only one person files a personal bankruptcy or a consumer proposal, the other party can be held responsible for all of the joint debts.
For more information on credit rating, please see Equifax at www.equifax.ca and/or Trans Union at www.transunion.ca.
At Hoyes, Michalos in Kitchener, Ontario, we work with many couples to review their debt situation and develop a plan for the future which deals with their past debts. To review your situation further, please e-mail us a question or call our Kitchener office at 747-0660 or 310-PLAN.
posted by Scott Schaefer, CA @ 3:54 PM
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