owning half a house
June 21st, 2012 by Questions
I own half a house with my sister, it was willed to me from my grandmother, however in her will it states my father is to live in it till he dies or chooses to no longer live there.
Can I still file for bankrupcy? And what happens to the house?
Posted from: British Columbia
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June 21, 2012 at 6:37 am, A licensed trustee said:
Your father has what is known as a “life interest” in the house. If you file for bankruptcy your trustee will regsiter your bankruptcy on title (effectively that means your bankruptcy will own half of the house with your sister – not you). If your father moves from the house or when he dies the house will be sold and half of the proceeds will be paid to your bankruptcy for the benefit of your creditors, the other half will go to your sister.
The trustee handling your bankruptcy will be pleased to sell your half of the house to your sister at a very good price when you file for bankruptcy, instead of waiting for your father to move out. Of course, your ister has to have the means to do this.
Alternatively, you might want to consider whether or not you can afford to file a consumer proposal instead of filing for bankruptcy. At least discuss this option with your trustee BEFORE you file.