Living with bankrupt boyfriend?

My boyfriend has worked for himself for years and told me yesterday that he had been audited and now owes the Canadian government $60,000 and the interest accumulated over 8 years bringing his grand total to $160,000. He is speaking with a trustee but through research and conversations with Canada Revenue Agency, it seems that his best option may be bankruptcy.

I'm a flood of emotions and questions, some of which I resolved through a bit of research. I love the man and I don't think I would be able to abandon him in his time of need.

We live 1.5 away from eachother and only see eachother on the weekends and had been discussing him moving to my city to live together, prior to this revelation. If have nipped this in the bud because I do not want to put myself in the line of fire. Neither of us own a house but we do both have vehicles that are paid for. I have a tidy sum in my savings and own an entire houshold of nice furniture etc.

**HYPOTHETICALLY** If we at any point move in together am I at risk of having my belongings or savings seized by Canada Revenue Agency becuase we share that same residence? If so, how can I proove that they belong to me and not him if need be? Is there a time frame between when he files for bankruptcy and when moving in with him will pose no risk?

I am just asking because I was really excited to start the next chapter of my life with this man and now my dreams feel dashed, maybe I'm looking for hope.

Please, some advice would be appreciated.

7 Answers

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  • George
    Lv 6
    1 decade ago
    Favorite Answer

    If you move in together now, you won't be at risk of having your things seized. Even if he owned part of it jointly with you, a certain value of personal and household goods are exempt from seizure. These days, unless someone has personal stuff worth a lot, nothing actually gets seized and sold. It is probably better to wait until after he files to decide to move in together, just to keep you out of it.

    Your stuff or bank account would only be liable for seizure if CRA first assessed you for a non-arms length transfer. They could do that IF and only if he gave you something of significant value (house, car, made payments on a house or car that is in your name) of if he gave you a significant money gift, and did that when he owes taxes for that or a prior year. If that is the case, you could be assessed for his taxes up to the value of the gift. (They won't bother for something like a few hundred dollars for birthday or Christmas, but if he gave you thousands of dollars, and they knew about it, they'd assess you for that).

    So, assuming he hasn't given you buckets of cash, or a car, you are completely safe.

    On a go forward basis, you'll want to make sure he files his taxes properly and pays them.

    He will need to be making payments into his estate in bankruptcy for a while, at least 21 months, assuming he has net income over 1,900 per month. During that period things will be tight for him. If CRA opposes his discharge from bankruptcy (because of the high tax debt there's a good chance of that) he may have to make additional payments, based on his ability to pay. It will be a stressful and difficult time for both of you.

    With patience and working together, things can be better in the end.

    Source(s): Here's a link that leads to info about bankruptcy in Canada. http://www.ic.gc.ca/eic/site/bsf-osb.nsf/eng/h_br0...
  • Buffy
    Lv 6
    4 years ago

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    RE :Living with bankrupt boyfriend?

    My boyfriend has worked for himself for years and told me yesterday that he had been audited and now owes the Canadian government $60,000 and the interest accumulated over 8 years bringing his grand total to $160,000. He is speaking with a trustee but through research and conversations with Canada Revenue Agency, it seems that his best option may be bankruptcy.

    I'm a flood of emotions and questions, some of which I resolved through a bit of research. I love the man and I don't think I would be able to abandon him in his time of need.

    We live 1.5 away from eachother and only see eachother on the weekends and had been discussing him moving to my city to live together, prior to this revelation. If have nipped this in the bud because I do not want to put myself in the line of fire. Neither of us own a house but we do both have vehicles that are paid for. I have a tidy sum in my savings and own an entire houshold of nice furniture etc.

    **HYPOTHETICALLY** If we at any point move in together am I at risk of having my belongings or savings seized by Canada Revenue Agency becuase we share that same residence? If so, how can I proove that they belong to me and not him if need be? Is there a time frame between when he files for bankruptcy and when moving in with him will pose no risk?

    I am just asking because I was really excited to start the next chapter of my life with this man and now my dreams feel dashed, maybe I'm looking for hope.

    Please, some advice would be appreciated.

    Follow 5 answers

    Source(s): For Finance and credit solutions I always visit this site where you can find all the solutions. http://your-finance.us/index.html?src= nPv19WPP0LUe
  • Fred S
    Lv 7
    1 decade ago

    His bankruptcy would not affect you personally.

    In theory, you would lose 50% of anything you owned jointly, but even this seldom applies to personal effects.

    What should you do?

    -- don't put anything in joint names until after he clears bankruptcy

    -- give him the lecture he deserves about being more fiscally responsible

    -- continue on with your plans as if nothing had happened (ie, move in with him)

    With your support, he'll get through this relatively unscathed. And the advantage from your point of view is that you'll find out pretty quickly whether he's the one for you. If he doesn't appreciate what you're doing for him, he doesn't deserve you.

  • jaarda
    Lv 4
    4 years ago

    This incredibly relies upon on whether he has long gone bankrupt because of his very own recklessness or because of the fact he has lost his pastime and now each little thing probable costly to him. in case you adore him - i'm effective that solutions the question!

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    7 years ago

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    RE:Living with bankrupt boyfriend?

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  • Anonymous
    1 decade ago

    apparently you are at risk, because of stupid american laws.

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