personal bankrupcy

December 5th, 2007 by Questions

My brother was put on my dads deed of the house in 1997,the house was paid,as of Dec 2007 there is 192,000 mortgage,my dad kept helping my brother and his wife with credit cards using the equitiy of the house,my brothers wife left him and now he is stuck again with the credit cards and a line of credit,can he file personal bankrupcy on his creditors and not have to sell the house,the debts are my brothers not my dads,but my brother is responsible for the mortgage,his wife happened to be guarantor of the house,can he file bankrupcy for him and his wife do her own thing?

Questions

One Response to “personal bankrupcy”


, Barton Goth GCO Bankruptcy Trustees said:

If your brother is connected to the houes (i.e. registered on title) and there is equity in the house if your brother files bankruptcy part of this equity is legally his. As a result it is an asset that must be recovered for the benefit of the creditors.

Now this doesn’t mean he will have to sell the house, but he will have to compensate the estate in lue of this equity (i.e. if his share is $15,000 he will have to provide $15,000 into the estate). Realistically the creditors don’t care where the money comes from, they only care that they receive their share.

Alternatively your brother may consider filing a consumer proposal and this wouldn’t have any direct impact on the house. For more infomraiton on these you are best to contact a local trustee for a more detailed description.

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