Joint property for non-filing spouse

January 10th, 2012 by Questions

I have a complicated question and I would really appreciate if you would answer this for me. I would help me alot!

My husband and I have a house.

We have separated in the past year, although neither one of us has filed legally for separation. After he left, he stopped paying his share of the mortgage on the house. My adult son has been helping me pay for the full mortgage every month since then.

My question is – if my husband files for bankruptcy, would I be able to pay his half of the equity to keep the home under my name? Or would my husband be able to sell his share of the home to my son, who has been helping pay his share of the mortgage anyway, to pay his creditors prior to filing for bankruptcy.

If he files for bankruptcy, and we are separated, would the trustee offer me to buy out his share of equity? and would buying out his share of equity mean that I can be the sole owner of the house.

Please advise! I am in desperate need of advise in order to try and secure my future.

Looking foward to your response.

Posted from: Ontario


One Response to “Joint property for non-filing spouse”

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

You will have to discuss this with the trustee your husband files bankruptcy through. But you appear to be on the right track. Any equity in the property is jointly owned, the trustee will have to realize on your husbands share of the property, and if you are able to come up with 50% of this equity you or your son are the prime candidates to sell this equity to. The best thing to do is to contact the trustee your husband uses as soon as possible and express your willingness / interest to be involved in the purchase. The result is you will get full title to the property and your husband will no longer have any interest in it.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)