Mortgage
April 27th, 2012 by Questions
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”
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April 27, 2012 at 11:31 am, 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.