Separation and bankruptcy

August 4th, 2011 by Questions

Good morning,

I am confused about a friend situation regarding her recent bankruptcy. She wasn’t married (common law) and when diagnosed with cancer she filled for bankruptcy and pretty much lost everything and got separated.

Now her ex wants to sell the house that he kept (but probably didn’t pay the morgage of) without filling any papers regarding any kind of transfer of the property to him only.

Technicaly , her name is still on the house so can he sell the house without her permission ? I she entitled to half the equity ? And if he doesn’t sell the house does he has to buy her half of the house or can he stay in the house pro bono ?

I am completly lost because I thought bankruptcy meant losing your house to the bank !

Thank you for your answer because I just can’t find an answer anywhere !

Posted from: Ontario

Questions

One Response to “Separation and bankruptcy”


, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

Well you don’t necessarily lose your house as a result of filing a bankruptcy, it depends on the amount of equity in the house and a few other variables.

However, if the house is still in both names what your friend has lost is the legal authority to sign off on that house. That is something that the trustee would need to do. So if her ex wants to sell the house then he needs to get in contact with her trustee and if he tries to get her to sign anything she needs to speak with her trustee first.

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