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Mrs. White

Can creditor’s take assets from someone’s spouse who had filed bankruptcy and dies before discharge?

Posted from: Ontario

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One Response to “Mrs. White”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

This would really depend on the type and nature of assets we are dealing with. But technically this could happen.

Here is an example, let’s say we have a husband and a wife. The husband has a house in his name, the wife is not on title. We will ignore the potential dower interest in the property and say that the wife is in bankruptcy, and the husband dies. In the husband’s will the house is left to the wife (who is still in bankruptcy. In this example the house would have to be sold by the trustee and the equity realized for the benefit of creditors. So yes, it is definitely possible.