Filing for Bankruptcy can affect your spouse, particularly if you have joint debts or assets. While your spouse's income isn't directly included in a Bankruptcy, joint financial arrangements may be affected. It's essential to seek advice from a Licensed Insolvency Trustee to understand how Bankruptcy could impact your spouse's financial situation.

If your spouse chooses to file Bankruptcy, it will not affect your credit rating; however, applying for joint credit or loans after your spouse's Bankruptcy may be affected by their lower credit rating, potentially limiting your options for borrowing.

If you're concerned about your spouse's overspending and its impact on your financial well-being, there are proactive measures you can take. These may include counselling, establishing separate accounts, creating a budget to manage household finances effectively, and seeking legal advice to safeguard your assets. It's essential to address these concerns proactively to mitigate potential risks and protect your financial future.

Tax debt arises when individuals owe the government money due to insufficient tax payments. While income tax deductions are typically taken from paycheques as estimates of annual tax obligations, the actual amount owed can vary based on individual income levels. If one's tax deductions do not adequately cover their tax liability, they will owe an amount known as tax debt when filing their tax return. Learn more about tax debt here .

The CRA does have the ability to take collection measures without having to go through the court system. For example, they can: Garnish your wages Put a freeze on your bank account and seize the funds on deposit Withhold certain tax credits such as GST refund cheques to pay down the debt owing Arbitrarily assess any income tax returns not yet filed and apply penalties and interest to the debt owing File a lien on your...

If you're unable to pay your income tax debt in full, consider these options: Payment arrangements : Contact the CRA to set up a manageable payment plan, possibly avoiding significant interest and penalties. Consolidation loan : Explore obtaining a consolidation loan from a bank or private lender to combine your income tax debt with other outstanding debts into a single monthly payment. Bankruptcy or Consumer Proposal : If...