seperation and bankruptcy

September 13th, 2008 by Questions

My common-law wife (now separated ) Own a home together and still owing a mortgage.With the separation has put me in a dire financial situation.what would happen if I claimed bankruptcy.She is capable of paying the mortgage on her own.We haven`t gone to court yet to settle the assets or Child/spousal payments.

Posted from: Ontario


One Response to “seperation and bankruptcy”

, A licensed trustee said:

If your name is on the home and if there is equity (net value) in the home and you file for bankruptcy then your share of the equity will vest with your trustee. In layman’s terms that means your trustee will expect to be paid an amount equal to the value of your share of the equity or they will apply to the Court to sell the house.

I suggest you and your ex speak to a family lawyer and sort out your separation before you file for bankruptcy – unless you wat to put your ex in an awkward situation.

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