What is the effect of a husband going bankrupt on his wife's assets?

New Brunswick, Canada


The following excerpt is from Gaunce v Gaunce, 2018 NBQB 40 (CanLII):

On the date of separation the couple had two significant marital debts jointly and severally owed to third party creditors. After separation (and after the parties respective applications under the Marital Property Act were filed but before any court orders were obtained) the husband went bankrupt. The husband has since been discharged. The wife has not gone bankrupt. Consequently, because of the joint and several natures of those liabilities she remains liable to those creditors for the balances owing after any distribution was made in bankruptcy towards those debts (Bellamy v. Hill 2005 SKQB 333 at para. 56). She seeks indemnification from her husband.

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