House related

September 4th, 2009 by Questions

My husband and I owe over $200, 000 on credit cards, LOC, etc….all our debts are in our own names…except for the house…someone recommended that we take his name off of the house, then he declares bankruptcy, wiping out more then half the debt and then I can hopefully pay my part off, BUT this doesn`t really sound legal or ethical!!

Posted from: Ontario

Questions

One Response to “House related”



, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

You are correct, this type of transfer would be considered an offense under the Bankruptcy & Insolvency Act and being involved with such a transfer would likely result in the trustee having to go to court, obtain an order reversing the transaction and at the same time due to having committed a bankruptcy offense your husband would likely no longer be eligible for an automatic discharge. This type of action dramatically complicates the bankruptcy, may result in not being released by the bankruptcy and likely would cause you substantially more difficult than it is worth. I would strongly recommend not making a transfer of this type, from the sounds of it whoever suggested this simply doesn’t understand the insolvency laws.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)