If spouse goes bankrupt what about the house and assets?

Posted on Sunday, July 23, 2006

If only one spouse goes bankrupt and the house is joint what happens if you want to keep the house? There is maybe $30,000 equity. What happens to the house hold belongings? How are they determined for split for bankruptcy recovery money?

1 Comments:

At 10:49 AM, J. Douglas Hoyes, CA, Trustee said…

If one spouse goes bankrupt, that one spouse is required to pay their share of the equity in the house during the bankruptcy ($15,000 in your example). This could be accomplished perhaps by getting a second mortgage to fund the buy out. Household belongings are dealt with in the same way, although since in most bankruptcies in Ontario household belongings are exempt, it is usually not an issue. Another option would be to file a consumer proposal. Feel free to contact us for more information.