Bankruptcy and co-owned property
My mother and her brother-in-law co-own a duplex. The mortgage is paid. My aunt and uncle (the brother in law) are heavily in debt and want to declare bankruptcy. What happens to a house that is co-owned with a third party?
If their is equity in the property, the trustee will require the equity to be paid into the bankruptcy estate, perhaps by the third party, who would then own the property outright. The rules vary in each province, so you should contact a licensed trustee to determine how this would be handled in your case.