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Married and Equity

When calculating equity regarding a consumer proposal (ie. how much one would have to pay into the proposal so that if offers the creditors more than bankruptcy). How does joint equity work when only one is entering the proposal. Is the equity amount divided by 50%. (if so does this apply to to other assets as well ie. joint RESP – apply 50%?)

Posted from: Ontario

One Response to “Married and Equity”

A licensed trustee said...

You are correct – any jointly owned assets (like a house) will have the equity adjusted for the bankrupt person’s ownership percentage. So if you own half then 50% of the equity would be included in the bankrutpcy calculation 9and therefore impact your proposal amount).