Are you facing bankruptcy but worried how it might affect your spouse? In some cases the finances between spouses become unclear and the bankruptcy of one spouse can make the situation very complicated. The specifics will depend largely on extend on how the financial affairs have been structured between each spouse. It is possible though, that one spouse will be able to survive whilst the other spouse becomes bankrupt. To be a little more specific let’s look at an example. Let’s assume both spouses jointly own an asset like real estate and the house is jointly owned and worth $200,000 but the mortgage on the property is only worth $100,000. In this case the joint equity in the property is $100,000 which means each spouse is entitled to $5,000 each. Therefore the non bankrupt spouse would need to offer $50,000 to the trustee of the bankrupt spouse. If this didn’t occur then the trustee of the bankrupt spouse could apply to court and sell the property.

This is only one example of many which could arise in bankruptcy.

Bankruptcy is complicated and if you have a spouse and you want to understand the implications and consequences it is best that you call us direct and discuss your situation.

If you or your spouse are contemplating bankruptcy and I want to understand how will bankruptcy may affects your spouse, then call us today on 1800 462 767 to discuss your options.

All calls are free, entirely confidential and if required, anonymous.