bankruptcy

July 4th, 2013 by Questions

My common-law spouse and I are separated. We have one child and a large debt. We are in the process of selling our house to pay off debts. I do not work. We do not have a legal separation he agreed to do outside of courts. Now he is telling me he is going to file for bankruptcy. Can he do this and how would this affect me and sale of house. My name is on mortgage and line of credit.

Posted from: Ontario

Questions

One Response to “bankruptcy”



July 04, 2013 at 6:03 am, A licensed trustee said:

If he files for bankruptcy before the house deal closes then his share of the net proceeds will be paid into his bankruptcy for the benefit of his creditors. You will still be entitled to your share of the net proceeds and may do with them as you see fit.

Of course if he files, any joint debts the two of you may have will be looking to you for payment.

It might make more sense for the two of you to speak to a trustee and perhaps file a consumer proposal to deal with all of the debt. You might offer the net proceeds from the house as settlement on the debt. It depends on how much you owe and how much money may come from the sale of the house. It is worth considering…

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