August 23rd, 2009 by Questions
My wife and I own a house we are both on the line of credit that we took out on it, if I just file bankruptcy will she still be able to keep the house if all payments are up to date???
Posted from: Ontario
One Response to “Bankruptcy Co-signer”
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August 24, 2009 at 8:06 am, A licensed trustee said:
If there is no equity in the house and your spouse maintains all of the payments then you should be able to keep the house.
If there is equity in the house then things become a bit more complicated. Equity means “money left over” after the house is sold. Since you both own the house you are each entitled to 50% of the equity if the house is sold. If you file for bankrutpcy then your share of the equity must be paid to your trustee for the benefit of your unsecured creditors.
This can be confusing – I suggest you contact a trustee in your area so that you can discuss this in detail with them BEFORE you decide to file for bankrutpcy.