Question: Hi, I’m thinking of declaring bankruptcy in Ontario due to too much debt. However, 2years ago I co-signed a house for my mom. She is in ownership/title of her home, I’m not in title. But I’d like to ask if my bankruptcy will affect her home in any way. Please advise! Thanks.
Answer: Since your mother owns the house, and you have only co-signed the mortgage, your bankruptcy does not affect the ownership of her house. When you go bankrupt you lose your assets, but you do not lose assets owned by someone else.
However, it is possible that when your mother’s mortgage comes up for renewal the mortgage company may want another co-signer due to your bankruptcy, so that is something your mother should prepare for in the future.