Question: If I sold a house 3 years ago because of a divorce, split the proceeds in a settlement, and now find my financial situation has forced me to file for bankruptcy, will I be obligated to repay that amount? Financial difficulty was brought on by first child support, then by gambling.
Answer: It depends on when you got into financial trouble. If all of your debts were incurred in the last three years after your divorce, you were not insolvent at the time of the sale of the house, so you would not be required to repay the house proceeds. However, if you were in debt at that time, it is possible that some extra payments may be required in your bankruptcy.
A bankruptcy trustee can provide more details. It is also likely that if a significant portion of your debts are as a result of gambling, your bankruptcy may be extended, so a consumer proposal is another option your trustee will advise you to consider.
Answer: It depends on when you got into financial trouble. If all of your debts were incurred in the last three years after your divorce, you were not insolvent at the time of the sale of the house, so you would not be required to repay the house proceeds. However, if you were in debt at that time, it is possible that some extra payments may be required in your bankruptcy.
A bankruptcy trustee can provide more details. It is also likely that if a significant portion of your debts are as a result of gambling, your bankruptcy may be extended, so a consumer proposal is another option your trustee will advise you to consider.
Labels: bankruptcy, bankruptcy Ontario, bankruptcy trustee, consumer proposal
posted by Questions @ 7:19 PM
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