bankruptcy and new property

November 2nd, 2010 by Questions

I may have to declare bankruptcy but I need to find a place to live beforehand. What would happen if my Mom and I bought a property jointly, but I would pay the mortgage? How would bankruptcy (if I do declare) or a consumer proposal affect that?

Posted from: Ontario


One Response to “bankruptcy and new property”

, A licensed trustee said:

If your credit is in bad enough shape that you think you need to consider filing for bankruptcy, you may have some difficulty securing a mortgage (even with a co-signer) for this new property you want to buy.

If/when you buy this new property it has an net worth (equity) then you will be required to apy an amount equal to your share of the equity to your trustee as part of your bankruptcy.

It probably makes more sense to simply have your mother buy the house and allow you to rent it from her. She can always sell it to you at soime later date (after your bankruptcy is over)…

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