loan from mom

April 2nd, 2013 by Questions

my downpayment of 10,000 was a loan from my mom, that is the only equity in the house, will she lose it if I claim bankruptcy

Posted from: Ontario


One Response to “loan from mom”

, A licensed trustee said:

When your mother loaned you the downpayment she should have registered a mortgage on the house, either that or she shouold hav ebeen put on the deed for her share of the house. She may still beable to do these things – she should speak to a lawyer. The lawyer will tell her she needs to be able to prove the downpayment came form her and that it was intended as a loan, not a gift.

This is something you should discuss with a trustee BEFORE you do file. The trustee will be able to tell you whether or not your house is at risk.

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