This week, we touch on bankruptcy matters, whereby this involves two homeowners, with one being sued by creditors on the verge of being a bankrupt while the other owner is fine, but has a concern regarding her share of the property. So this question of the week is: “Will creditors have the chance to go after my share even though I’m not the bankrupt party?”“My spouse is bankrupt, but I am not, If I sell the property will the creditors go after my share too?”
Answer: It’s only the % share of the property that the bankrupted party that the creditors will be going after, but they have no entitlement over the non-bankrupted party. Phew!
PropertyWiki Tip: Law firms would usually conduct a bankruptcy search on the vendor (Seller as we call it), to protect the Purchaser’s interest. Hence, in situations whereby the seller(s) is/are bankrupt, an Official Assignee’s (OA) consent is required before the property can be approved to be sold.