• Last Updated:
  • Jul 30th, 2009 7:49 pm
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[OP]
Member
Jul 25, 2009
411 posts
1 upvote

Default question

If John & Jane (friends) co-own a residential property where Jane has 99% ownership and John has 1% ownership, in the event that John becomes bankrupt because he is an idiot and John's unsecured creditors sue John for a share of his equity in the property, will the creditors only have access to the 1% or 50% of the property?
1 reply
Jr. Member
Jan 27, 2009
177 posts
2 upvotes
If it's clearly written out in the purchase contract that the ownership is 99%/1%, the creditor only has access to 1% of the value of the asset.

Problem : The bank can force liquidation of the asset in order to get the 1% that they now own. The bank has no intent on maintaining a 1% stake in Jane's cottage :) .

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