Bankrupcty

July 27th, 2012 by Questions

I have a house under my name and paying the mortgage.When we signed the legal paper work lawyer said I cannot sell my house with my wife’s consent,If I declare bankruptcy, will that effect her.Is she responsible for 50% of debt since she is filing separation.

Posted from: Alberta

Questions

One Response to “Bankrupcty”


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

I want to first clarify a few things. A bankruptcy is directed towards your unsecured creditors. So you if have a mortgage and file a bankruptcy, if the house hasn’t been foreclosed on the original contract stays in place.

The only way for a house to be included in a bankruptcy and you cleared from that debt is if you have the house foreclosed on prior to filing for bankruptcy. Now if the house is already foreclosed and you file a bankruptcy, you would be cleared from that debt, but only you. Any other party signed on that mortgage would be fully responsible for whatever the sale of the house didn’t cover.

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.)