Legal separation, and husband seeking bankruptcy

February 13th, 2015 by Questions

In the process of a legal separation,and husband seeking bankruptcy.Can my ex-husband request to all of our creditors to be responsible to all matrimonial debts as he is planning to seek bankruptcy and does not wish to drag me in to primary and co-signed debt? What will happen to the mortgage if I want to keep the house? Will his trustee take 50% of the positive equity?

Posted from: Alberta


One Response to “Legal separation, and husband seeking bankruptcy”

, Desmond West-Chow, CIRP said:

If debt is joint, whether as co-signors on a loan or having been issued supplementary cards, the only way to be free from the obligation to pay them is to have the bank or lender agree to remove your name from that debt. Although possible, it is rare that this occurs. If your ex-husband were to file a bankruptcy, you would be fully responsible for any outstanding amounts owed. In terms of the house, you are correct. If there are two people listed as owners of the house (you and your ex-husband) , your ex-husband’s trustee would assume 50% of the equity of the house. In order to have the trustee in bankruptcy removed from title on the home, the house must either be sold and your ex-husband’s portion of the equity paid to the trustee, or his portion must be paid to trustee through refinancing or other arrangements.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)