Mortgage property and bankruptcy
My partner and I purchased a house in joint ownership a number of years ago. We subsequently contracted a joint second mortgage. When we ended our relationship he kept the house and made mortgage payments. I moved and paid rent ever since – approximately 7 years now. I signed bank papers for a waiver of my part of the ownership and mortgage(s) and he was to file them with the bank. That never happened. Now we have each been served with court documents demanding settlement of the outstanding balance. Am I still responsible and will filing for bankruptcy remove me from any responsibility and have the mortage revert solely to him, or am I still wholly or partially responsible until the claim has been settled?
Posted from: Ontario
If I am following what you have said, you are still legally responsible for the outstanding balance of the mortgage. Whether your ex failed to file the necessary documents with the bank, or if it was a matter that he could not be approved for the mortgage solely in his name, the result is the same. You were not removed from the mortgage, so you are responsible for the shortfall. Now you are correct that by filing a bankruptcy will serve to clear you from this balance and your ex will then be the only one responsible for the full balance of this shortfall.