House ownership

July 23rd, 2006 by Questions

What happens if a relative holds the whole mortage on your house,and the house is in your name ,but you have no equity in the house, what are the laws pertaining to filing backruptcy in Ontario, in that situation?

Questions

One Response to “House ownership”



July 25, 2006 at 8:45 am, A licensed trustee said:

If there is no equity in your home and you file bankruptcy, your trustee will have no interest in the home (ie as far as the trustee is concerned you may keep your house).

When you go and see a trustee they may ask you to prove that the family member that holds your mortgage actually forwarded the money to buy the house in the first place. Better to discuss all of this upfront before you file so that you can be certain there won’t be any surprises if you file bankruptcy.

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