Selling Home

September 1st, 2008 by Questions

I have about $100,000 in personal debt and considering bankruptcy. In terms of assets, I am part owner of a home that was purchased 2.5 years ago and therefore has not accumulated much equity. The other owner of the home is my mother who is in good credit standing. Should I transfer 100% ownership of the home to my mother or should we both sell the home before I claim personal backruptcy?
Thank you for your time and advice.

Posted from: Ontario


One Response to “Selling Home”

, A licensed trustee said:

I realize that you’re just starting to look into your options, but since there is a house involved and another person (your mother) I suggest you call a trustee directly to discuss your situation.

If there’s no equity in the house then it will not be affected if you file form bankruptcy. If there’s very little equity in the house you may be able to “pay an amount equal to your share to your trustee and therefore keep the house – or perhaps your mother could “buy” you equity and again, you keep the house.

Before you start transfering things you should speak to someone directly – transfering the house (if it has any equity) can get you into trouble…

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