eligibility for bankruptcy

October 16th, 2013 by Questions

My husband and I are loaded with loans with quite a few creditcard companies. We do not have any assets at all, except we are a gaurantor to a house that we had transferred to our two children six months ago, because we could not take care of the house financially. My question is that can we file bankrupcy in this case?

Posted from: Ontario


One Response to “eligibility for bankruptcy”

, A licensed trustee said:

You are eligible to file for bankruptcy if you are insolvent. That means you owe at least $1,000 to your creditors, you are unable or unwilling to pay your debts as they come due, or your assets, if sold, won’t generate enough funds to pay off your debts. Sounds like you are eligible.

I think what you meant to ask is are we going to get into trouble for transferring our house 6 months ago. Maybe. If your children paid the fair market value for your house then there won’t be any issues for them. If you “gave” them the house, including equity you would have received if it had been sold, then you will likely have to pay an amount equal to the equity into your bankruptcy – or there will be trouble.

This is something to discuss in detail BEFORE you decide to file.

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