My daughter and her husband had a business, my daughter co-signed a line of credit for the business. Since that time they have seperated and are now divoreced. I advanced my daughter money to pay off some huge debts from the business and in lieu she has title to the house. She has fear that her ex husband will declare bankruptcy and the fact that she could not get her name removed from the line of credit she will lose her house. My fear is that I will loose all the money that I advanced her.

If your daughter has signed the line of credit, they can pursue her. If the line of credit is secured by the house then they can foreclose if the line is not paid. If the house is not secured then they would have to sue her to place a lien on the house. This situation appears to be fairly complicated and I would suggest you talk to a Trustee to better clarify it for you.

Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca