I own a condo in Arizona with my brother.
I understand that in a bankruptcy I would loose my share, but would this happen if I file a proposal instead?
consumer propsal and impact on international property
posted by Questions @
1 Expert Comment:
At December 31, 2009 |
1:25 pm
, Bart Goth, Trustee in Bankruptcy Said...
It is not directly lost in a consumer proposal as it is in a bankruptcy, but it does have to be considered.
What happens in a consumer proposal is that you have to offer more than would be available in a bankruptcy an in a bankruptcy you would loose your share of the property (i.e. it would vest in the trustee and would have to be sold and distributed among your creditors).
The way that this relates to a consumer proposal is that the offer you make to your creditors must be greater than what the creditors would receive, including the liquidation of that property. So as much as the property is not directly lost with a consumer proposal the amount offered with in it must reflect your share of the equity in the condo.
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