Marrying someone who has Applied for Bankruptcy or Consumer Proposal

October 7, 2013 | Category:

Marrying someone who has Applied for Bankruptcy or Consumer Proposal

Before you get married, you likely have a lot of questions. Some of these questions will probably involve financial matters.

How does applying for a bankruptcy or consumer proposal affect your partner? Does marrying someone who has applied for bankruptcy damage your credit score?

These are important questions to answer and talking about financial issues with your partner is very important as well. It can be the difference a happy marriage and one filled with stress and arguments.

Bankruptcy or proposal doesn’t affect your partner’s credit score. In addition, a husband, wife or common-law spouse is not responsible for their partner’s financial debts unless they have co-signed those loans or if the accounts are under both partners’ names. You are not responsible for your partner’s financial decisions.

However, if you are planning on marrying someone who has recently filed for bankruptcy or consumer proposal, you may want to maintain separate bank accounts for the next while. Opening a joint account with a spouse who has recently applied for bankruptcy can cause their poor credit to reflect on you. This includes higher interest rates on loan applications.

Discuss Financial Issues with your Partner

Being open with your partner regarding financial issues is one of the keys to a healthy relationship. If one partner has money issues and does not discuss them with his or her partner, there could be unexpected problems in the future. These problems can lead to major disagreements and arguments. Disagreements over major financial decisions and financial issues are one of the major causes of failed relationships.

Avoiding Bad Debt in the Future

In order to avoid bad debt in the future, there are a few things you can do.

  •  The first is to avoid living beyond your means. Make a budget, stick to it and don’t allow yourself to spend more than you can handle.
  • It’s also important that you don’t ignore credit card debts and that you avoid making only the minimum payment on your credit cards. Only paying the minimum can cause you to spend a great deal of money on interest.
  • You’ll also want to say no to payday loans. These loans can be very expensive and they almost always cost you more than other loans.

For those who have had financial difficulties in the past, don’t worry. There are many ways to rehabilitate your bad credit score after bankruptcy or consumer proposal. These options include getting loan after bankruptcy or proposal from a bad credit lender that reports to credit bureaus. Successfully paying back that loan shows the credit bureaus that you are able to properly manage money and pay down debt.



More Posts

Are online only banks right for you in Canada?

A home equity loan vs a Reverse Mortgage in Canada

Your credit score and simple ways to improve it

The Basics of budgeting and taking on new debt

Mental health and your finances during Covid

Preparation for the Second Wave and your finances

Money saving tips when you’re impacted by Covid-19

Should I only make the minimum payment on my credit card?

Can a Second Mortgage be beneficial in the GTA?

Car Financing in a Crisis

Secure Your Loan. Apply Today!

Click below to submit your loan application.