ex-spouse files bankruptcy, intial mortgage signed by both parties

October 11th, 2007 by Questions

At the time of divorce, six months ago, my ex wanted to continue living in our home, so he took another mortgage under his name (solely) and paid off my portion to me. He is going to file bankruptcy now. Is it going to affect me in any way since the initial mortgage was signed by both of us?


One Response to “ex-spouse files bankruptcy, intial mortgage signed by both parties”

, Barton Goth GCO Bankruptcy Trustees said:

This is very difficult to predict as it is dependant on:
a) the province you live in;
b) the amount of equity in the property;
c) whether or not your ex is planing / able to continue to make payments on both mortgages;

The situations in which you may potentially have a problem is if there is more equity in the property than the provincial exemptions permit, or if your ex is not planning or able to continue with the mortgage payments.

The best thing to do is to discuss this with your ex-husband and perhaps his trustee to determine what you can expect will take place.

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