If one person in a marriage has created the debt and the majority of it is in their name alone, do they have to include the spouse in the process?

The spouse of a person who is in financial trouble does not have to be part of the process, but certain aspects of their joint life must be disclosed as part of the process. These would include:

  • All assets that are considered "joint assets" where both names appear
  • Joint liabilities where both names are responsible for the debt
  • The combined income of the family

In most cases the spouses name may appear on the documents but he or she would generally not be required to meet with the Trustee, creditors (if applicable) or attend any meetings. In addition, nothing would appear on his or her credit rating except the history of any joint debts affected by the restructuring.

In some cases, the spouse can become 100% financially responsible for the joint debt once the person in trouble has settled with his creditors, but this depends on who the creditors are.

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