Comments on: Separation and home equity http://www.bankruptcy-canada.ca/bankruptcy/2008/11/separation-and-home-equity.html Personal Bankruptcy Canada Blog Fri, 10 Feb 2012 15:23:44 +0000 hourly 1 By: Ted Michalos, CA trustee http://www.bankruptcy-canada.ca/bankruptcy/2008/11/separation-and-home-equity.html#comment-75099 Ted Michalos, CA trustee Wed, 26 Nov 2008 11:52:42 +0000 http://www.bankruptcy-canada.ca/bankruptcy/2008/11/separation-and-home-equity.html#comment-75099 You should speak to a Family Law expert (lawyer) about your situation. Under bankruptcy law, if yuo owned the house joint and severally (together on the deed) then your ex's trustee is correct - they are entitled to 50% of the equity upon the sale. In fact, you shouldn't have been able to sell without the trustee's consent. If your name was the only one on the deed then you should be able to close the sale, but the trustee may have the funds frozen with your lawyer until the matter is sorted out. Your best option may be to offer a proposal to your creditors (both hers and yours) to deal with the debts at the time of the sale. Talk to her trustee about this option too, it migth be the best one for you. You should speak to a Family Law expert (lawyer) about your situation. Under bankruptcy law, if yuo owned the house joint and severally (together on the deed) then your ex’s trustee is correct – they are entitled to 50% of the equity upon the sale. In fact, you shouldn’t have been able to sell without the trustee’s consent.

If your name was the only one on the deed then you should be able to close the sale, but the trustee may have the funds frozen with your lawyer until the matter is sorted out.

Your best option may be to offer a proposal to your creditors (both hers and yours) to deal with the debts at the time of the sale. Talk to her trustee about this option too, it migth be the best one for you.

]]>