Seperated, own home husband is declaring bankruptcy
August 1st, 2013 by Questions
My husband and I are seperated, I live in the home we own with our children. I pay the mortgage, insurance my self. He just told me that he is going to talk to the bank next week about declaring bankruptcy and said I will lose the house. I am wondering if this is true and what will happen ?
Posted from: Ontario
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August 01, 2013 at 6:07 am, A licensed trustee said:
The issue with the house will be whether or not there is any equity in the house. Equity simply means if the house was sold, after all of the costs have been paid (mortgage, taxes, real estate, lawyers, etc) there is money left over to be paid to the people that sold.
If you have equity in your home then the next issue is how much belongs to your ex? In most cases it is half, but you may want to speak to a lawyer to see if you can claim more.
If your ex is entitled to equity and they file for bankruptcy then the trustee handling the file will be required to try and recover that equity. Usually that means they will ask you to “buy” your ex’s half of the house from the bankruptcy by paying an amount equal to your ex’s share of the equity. If you can’t pay then the house may be put up for sale to recover the money.
If you think your spouse is serious about filing then you should go and speak to a Family Law lawyer immediately to see what can be done to protect yourself and the children.