Bankruptcy with Divorce Issues

August 3rd, 2009 by Questions

My wife (has separated from me Nov 24/08) and we have a house (owned jointly) which is currently up for sale. She declared bankruptcy (Jul 10/09). Alone, I cannot afford the mtge payments or the taxes.
Question: How do the trustees settle her 1/2 of the mtge debt – do I receive a payment on the 50% of the appraised value, or do they work out a deal with the mtge lender?

Posted from: Ontario


One Response to “Bankruptcy with Divorce Issues”

, A licensed trustee said:

Sorry, but I don’t have any good news for you…

If when you filed for bankruptcy the trustee didn’t contact you about the house then that means they are likely releasing their interest ti the secured creditor. That means they’ve told the mortgage compnay they don’t intend to do anything with the house. If you want/need your ex’s name off of title you’ll need to contact a lawyer who will then contact the trustee.

If you can’t afford to carry the house then unfortunately you’ll need to put it up for sale. If it is worth less than what you owe then you’ll have problems closing the sale – you’ll need to discuss that with your lawyer or your own trustee.

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