House
Hi,
Quick Question.
My ex common law girlfriend and I had signed a mortgage together, we’ve seperated and I am now residing in the house awaiting the mortgage to be put into my name only . She has just now filed for personal bankruptcy. Will this affect my credit since both of our names are on the mortgage????
If your husband has lived in the house and has typically had an income there is a strong possibility that the creditors could apply to court to obtain an order for ½ of the equity in the home. This is often referred to ad dower rights, and the idea is that the monies that he earned were for the benefit of everyone in the house and enabled the mortgage to be paid etc., therefore there is a strong argument to be made that this equity rightly belongs to your husband. It takes a bit of work for creditors to do this, but it is definitely a possibility.
Each province has a set of exemptions, most of which protect a certain equity level in your house. As long as your equity level is less than your allowable provincial exemption you shouldn’t have any difficulty (assuming you are up to date and able to continue to make your mortgage payment).
For more informaiton about the exemptions in your region and how your situation will be impacted by these I suggest you contact a licensed trustee in your area.
As long as there is no default in the terms of the mortgage her filing a bankruptcy in Canada should have no impact on your credit (assuming you haven’t been listed as joint borrower for any of her other debts).
What happens if I file for personal bankruptcy, our house is in both our names, and my wife pays all mortgage etc on this house, will the house be affected?
The answer depends on the value of the house, and the amount outstanding on your mortgage. If there is equity in the house, the house may be impacted by a bankruptcy. However, the rules are different in each province, so for a specific answer you should contact a licensed trustee.