Question: Our home was transferred to my husband’s name more than a year ago. My name is not on the title nor is it on the mortgage or insurance. This was done to protect this asset against a possible lien for a debt that I was personally responsible for. Would this home be protected should I file for personal bankruptcy in Ottawa?
Answer: When you file for bankruptcy, you are required to disclose whether or not you sold a house in the previous five years “while you were knowingly insolvent”. In your case you transferred the house to protect it from a creditor, so you were probably insolvent. Whether or not it would be an issue in your bankruptcy will depend on the value of the house and the mortgage balance at the time of the transfer, and your other debts.
As this is a significant issue, we suggest you consult a bankruptcy lawyer or an Ottawa bankruptcy trustee for more information.
