If my parents are filing for bankruptcy in BC and I took over their mortgage in May 2011, can the house be taken away from me? My parents are still living in that house but I am making mortgage payments and the house is in my name only.

Posted from: British Columbia

One Response to “Mortgage”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

What matters isn’t who is living in the house, but how much equity was in the house and if you provided any consideration for the transfer (i.e. money).

In a bankruptcy there is something called a Transfer at Undervalue, and what it says is that if you transferred property prior to filing a bankruptcy and the money received was not equivalent to the current equity value, then you would have problems. In this case as it is a very specific rule that must be applied you would be best to discuss this directly with the trustee they are going to use.