August 30th, 2013 by Questions
I have declared bankruptcy and my common-law spouse died and left a house to me and her adult daughter (as joint tenants). Do I have to sell the house?
Posted from: Manitoba
One Response to “Mr P”
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August 30, 2013 at 7:08 am, A licensed trustee said:
You are not required to sell the house, but you are required to pay an amount equal to the value of your share of the house into your bankruptcy for your unsecured creditors. If you are unable to do so your trustee has the right to try and sell your half to the other owner, or to ask the Court to require the house to be sold so they may recover the money.
You may want to discuss filing a consumer proposal to cancel the bankruptcy. You will still have to pay the same amount of money, but you can stretch the payments over 5 years and there won’t be any interest charges. Alternatively, you might look into getting a mortgage on the house as a way to raise the money.
Regardless, go and speak to your trustee – they will be able to review all of your options with you and then you can decide which makes the most sense.