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Divorce & Bankruptcy

I separated from my husband almost 2 years ago. There is an interim order of spousal and child support. He is in arrears for approximately $30,000.00 for support payments and I have filed with Maintenance Enforcement in Sask. He has since moved to Alberta and has filed for bankruptcy? Will the arrears of support be erased. We also hold a mortgage together on our house. If the house is sold, will he get 1/2 of the equity to be applied to his creditors. If so, I assume that Maint Enforcment will receive a portion of his equity in the house and I will get that, is this correct?

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One Response to “Divorce & Bankruptcy”

Barton Goth, GCO Inc. Bankruptcy Trustees said...

There is no need to worry about the amounts outstanding to Maintenance Enforcement (MEF), they survive a bankruptcy. However, as you ex is still registered on title, technically Â½ of the equity within the residence relates to him and his trustee will have to realize on this equity. Meaning you could arrange to take out a second mortgage and provide the balance of the equity that would relate to your ex or the trustee may be forced to sell the home. As to whether or not MEF will receive the remaining balance, I am not familiar enough with all the collection rights MEF has so I simply cannot comment on this, although it does seem reasonable.