Bankruptcy & Implications for Joint Assets

D

davisleroy

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Am considering the option of bankruptcy and wondering what the effect will be on assets owned jointly with my husband.

These assets consists of RIPS which are underwater worth 400k with debt of 850k.......These joint borrowings with my husband are not in arrears but the income from the apartments will never repay the 800k.

However because of other borrowings in my own name Bankruptcy seems like the only solution.

Presumably the court appointed assignee becomes joint owner of my share of these assets but presume they cannot force the sale of the assets without my husband's consent, particularly in circumstances where the loan is not in default. Or would my bankruptcy automatically put the joint facility in default ?

Even if it does trigger a default the Bank may not wish us sell the apartments now. Although it may be better In these circumstances can the assignee force the sale of these jointly owned properties?

The final point is are there any repercussions re the family home which is solely in my husbands name ? I am on the loan and pay 50% of the mortgage but title is solely in his name?
 
Your half of jointly shared assets becomes vested in the Official Assignee on bankruptcy.

To my understanding the Official Assignee could apply to the courts to get an order to sell the RIPS properties if he wanted to do so. If that happens, I believe that your husband will become responsible for the entire negative equity shortfall.

Given that the RIPS properties are under water and fully secured to a particular financial institution and not currently in arrears, the Official Assignee may agree to your husband taking full ownership of the properties and the associated debts,especially if your husband and the lender(s) are agreeable to that. Clearly properties in negative equity hold no value to an Official Assignee

I don't believe that there will be any impact on the family home in this case. Your husband will become responsible for the associated loan in its entirety.

It's unclear how much there is to be gained by you going bankrupt if a large part of the the debts just transfer to your husband. Having said that ,you haven't disclosed how much other debt is involved here in your sole name.
 

Thanks for your input Importer. I have a 450k debt elsewhere that I cannot repay.
 
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