The type of income a debtor receives does not limit the ability for debtors to carry out different restructuring options. In all cases, regardless of how a debtor feels, it's about looking at all of the options available and then having the debtor choose the option that they feel works best for them based on their current circumstances.

Simply put, no you cannot retain the credit cards in which are entering into a debt management program.

Making the decision to restructure can be a difficult one for some people. In this business "you can't have your cake and eat it too", which means that if you choose to deal with your creditors and stop living paycheck to paycheck the trade off is you will most likely take a substantial hit on your credit rating. Anytime you offer up less than 100% of your debt owed it will have a negative effect on your credit rating. Choosing to restructure means you should consider all your options and then make a choice based on options available and the best one for you. One option for some to consider with good credit is to consider a consolidation loan that protects your credit rating but be sure you don't have any other underlying spending issues and a solid budget to follow.

If an individual debtor files for protection from their creditors in a Bankruptcy or a Consumer Proposal then all the assets of the debtor and any joint assets must be listed in the documentation. In addition, for the purposes of preparing a Consumer Proposal the incomes of both the debtor and his or her spouse must be listed.

The spouse of a person who is in financial trouble does not have to be part of the process but certain aspects of their joint life must be disclosed as part of the process. This would include all assets that are considered "joint assets" where both names appear to own it, joint liabilities where both names are responsible for the debt and the combined income of the family. In most cases the spouses name may appear on the documents but he or she would generally not be required to meet with the Trustee, creditors (if applicable) or attend any meetings. In addition, nothing would appear on his or her credit rating except the history of any joint debts affected by the restructuring. In some cases the spouse then becomes 100% financial responsible of the joint debt once the person in trouble has settled with his creditors but this depends on whom the creditors are.

A person cannot be held responsible for someone else's debt unless they have done the following:

1. Both parties have signed for the credit card as a co-applicant
2. The principle card holder has requested a supplement credit card for the spouse

If the spouse or common law partner does have a supplement credit card then we commonly use this questionnaire to determine if a supplement card holder is responsible for the debt:

1. Does the credit card statement come in one name or both names?
2. Does the spouse have a supplement credit card, if so, has it ever been used?
3. Did both people sign up for the credit card as co-applicants?

Obviously, the more times you answer "Yes" the more likely you are to be responsible for the debt. It is important to note that there are "no hard fast rules" as some creditors will pursue supplement credit card holders while other creditors will not. In many cases it is as important to know who the creditor is as the outcome of the questionnaire.