What happens to the house?

I am unemployed and have credit card debt.  The debt is in my name not my spouses.  My spouse has been able to carry everything but these cards.  If I go bankrupt and she doesn’t what happens to the house?  There is some equity in it.

The effect of your bankruptcy on your house will depend on a couple of items.  If the house is solely in your wife’s name – then there is no effect, she continues the mortgage payments and keeps the house.  If the house is either jointly owned or 100% in your name, then in most cases you will be able to settle (pay) the Trustee your share of equity in order to retain the house.

The answer becomes more complex if you owe Canada Revenue Agency for taxes.  Make an appointment with us to review your situation in detail and explain how the process affects your assets.

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