Tessa
My common law husband is planning to file for bankruptcy. He owns a property with his two sons. Is it legal for us to sell the property and distribute some of his equity to each debtor and use some for immediate living expenses ? We are not making enough right now to cover rent, utilities and food costs. We plan on keeping all record of expenses and payments.
Posted from: British Columbia
You had better consult with a trustee and potentially an insolvency lawyer before you sell or distribute anything. The answer to this question will depend on the paperwork, how things have been registered etc.. But if things aren’t set up properly and you do this, the moment a bankruptcy is filed you may find that the court demands the money returned immediately for the benefit of your creditors.