I am Living With A Second Time Bankrupt Who Filed A Year Before We Moved In Together

Does Living With Someone Who Has Gone Bankrupt a Second Time Affect Me?

Living with someone who has declared bankruptcy twice can be a challenging situation, especially if they filed for it a year before you moved in together. This situation can raise numerous questions about how their financial status will affect you and your shared household.

Understanding Bankruptcy

Bankruptcy is a legal status of a person or other entity who cannot repay the debts they owe to creditors. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor. It is important to understand that bankruptcy is not a moral failing, but a legal solution designed to protect both creditors and debtors from unmanageable financial situations.

The Impact of Bankruptcy on Household Finances

Due to the nature of bankruptcy, it can have a significant impact on the overall household finances.


Income And Expense Statements: The individual who is bankrupt will be required to submit monthly income and expense statements to the Trustee. This statement should reflect the income and expenses of the household.

Monthly EI Benefits: Monthly EI benefits should be recorded on the statement along with any expenses you have incurred.

Tax Refunds: Tax refunds are not documented on the statement as this is not considered income.

Surplus Income Calculation: The surplus income calculation is based on the percentage of household income accounted for by the individual in bankruptcy. If household income increases or decreases, the amount the individual is required to pay may increase or decrease.


Note: The individual’s income can have an indirect effect on the surplus income calculation.


If you are living with a second time bankrupt who filed a year before you moved in together, it’s suggested that your partner contact their Trustee if they have specific questions about how the surplus is being calculated in his or her bankruptcy.

Adjusting To A New Financial Reality

Living with a partner who is experiencing bankruptcy can require adjustments and understanding. Here are some tips to help you navigate through this new financial reality:


Open Communication: Open and honest communication about finances is key. Discuss your financial situation, obligations, and future plans regularly.

Budgeting: Create a household budget that takes into account both incomes and all expenses. This will help you manage your finances more effectively.

Financial Responsibility: Everyone in the household should understand their financial responsibilities and contributions.

Seek Financial Advice: Consider seeking advice from a financial advisor or counselor to help navigate through this complex situation.



Living with a second time bankrupt who filed a year before you moved in together can be a complex and challenging situation. However, with open communication, a solid budget, and a clear understanding of financial responsibilities, it is possible to navigate this financial journey together. It’s important to remember that bankruptcy is not a life sentence, but a legal solution to financial difficulties. With patience, understanding, and teamwork, you can build a financially stable future together.

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