jointly owned property and potential proposal
My ex and I are going through a divorce. Both our names are on the title of the house and on the car. I no longer make the mortgage payments but he continues to do so. He does not pay my car payments but I do. Given the amount this divorce has cost me, I now have two options, try a proposal to my creditors or declare bankruptcy. What happens to those assets. Note that both the house and the car have more debt tied to them then either one of us could sell them for.
Posted from: Alberta
You will likely find that the car and the property are not relevant in a consumer proposal or in a bankruptcy. This is largely due to the lack of equity in either property (i.e. if you subtract the value of the financing from the value of the car or house there is a negative result), thefore there is no value in the asset that would accrue to creditors in either situation.
The only thing that you may consider is allowing the vehicle and the house to be seized / forclosed. If you do this prior to the filing of the bankruptcy or the consumer proposalthen the shortfall from these amounts will be included and cleared.