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Divorce and Bankruptcy
Question: I am in the middle of a divorce and we have many accumulated debts together. The house was taken by the bank but we are left with all the other household debts. What happens with the house? Am I still responsible? Also what happens when the debts are in both of our names?Answer: If a debt is in both names (you and your ex), you are both responsible for the entire amount of the debt. If a bank repossesses a house and sells it, and does not recover the full amount owing on the mortgage, they will pursue you for the difference.
The same is true for debts that are in both names. If one of you does not make the payments, the lenders will pursue the other person for the full amount owing.
Divorce is one of the leading causes of bankruptcy in Canada, so if you believe that you will not be able to pay all of your debts in full, you should consult an Ottawa bankruptcy trustee to explore all of your options.
Labels: bankruptcy Ottawa
posted by Questions @ 11:07 PM
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