One spouse declares bankruptcy and was never on the title
September 28th, 2015 by Questions
Hi, I am wondering in Newfoundland how matrimonial home works, If one spouse declares bankruptcy and was never on the title of the home but lived there would they have to claim it as an asset if their name is not on the title?
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September 28, 2015 at 8:10 am, Doug Stuive, CA | Trustee | CIRP said:
This situation would have to be disclosed to the Trustee so it can be noted in the file. Documentation should be provided to the trustee showing that the house is in the name of the spouse only. If the house was never in the bankrupt individual’s name then it would not be listed as an asset on their Statement of Affairs. However, the trustee may have an interest in matrimonial home should there be a separation or divorce proceeding taking place during the bankruptcy period. During bankruptcy, the trustee would step into the bankrupts shoes and any rights the bankrupt may have in the property as a result of separating now vest in the trustee.