I am trying to get a clarification on a legal motion that my son & I received in April 2019 that is still unresolved.

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Typing will be fine unless we absolutely need to talk via telephone

Basically this is what has transpired to date and I am unclear as to why my son & I seem to have no legal leg to stand on in this situation. In 2009 my son, his partner & I built a home together obtaining a loan from Scotiabank for a period of 5 years which came due in March 2015. In January 2013 my son & his partner amicable split up but we all remained on good terms and in 2015 we proceeded to get a new mortgage with CIBC bank increasing it with the equity of the home bringing the new mortgage up to $546,000.00. All three agreeing verbally to pay 1/3 share of monthly mortgage payments. My son's partner who was residing in Ottawa received over $50,000.00 to pay off existing credit cards etc. My son & I received $40,000.00 for the same purposes. My son's partner made 1 mortgage payment and then informed us via email that he will not be making anymore payments so my son & I took on the mortgage responsibility and continued making monthly payments. In 2016 my son & I received another email from ex partner asking for another $50,000.00 and if we did that he would sign over his share of the house and he would be eligible for a bank loan. My son & I refused as we could not afford to give him another $50,000.00 having had to take over his share of monthly mortgage payments contacted the CIBC mortgage department and inquired about just my son & I taking over the mortgage. The person at CIBC said we required a notarized letter of covenant from the ex partner to do this. I approached my son's ex partner about this and he refused to do it. I then went to see a lawyer whom on my behalf sent a letter to this ex partner requesting a letter of covenant releasing him from his mortgage obligation therefore allowing him to apply for the $50,000.00 loan he required. This letter was ignored and then he blocked my son & I from further contact with him. Now this exporter has gotten himself another partner and in October of 2017 they went to a credit union and obtained over $71,000.00 in 2 loans and in October in 2018 both parties declared bankruptcy. The credit union then obtained permission from the bankruptcy to sue os for the amount of this loan as the exporter's name was still on the property deed. The CIBC bank, my son or myself were never notified of this bankruptcy until my son & I received legal motion that we were being sued for the amount of this loan.
I hired another lawyer to handle this legal matter and it went before a bankruptcy judge in January 2020 whereby the judge stated that the property be listed for sale for a period of 120 days. The house was listed and then in March everything closed down because of Covid 19. After 120 days were up instead fo us going back to court in front of the judge we relisted the house. The house sold in August owe much confusion between the lawyer for he credit union, my son & And our lawyer. Closing was Dec 15, 2020 and all net proceeds are now sitting in the law firms accounts till we go back to court.
We have made three offers to settle with this Credit Union the last one being for $71,9998.98 and all have been refused. The credit union lawyer's last counteroffer is now at $120,000.00 the amount of the loan, interest and their legal fees almost the full 1/3 proceeds of ex partner's share.
Our lawyer says we are entitled to ask for ex partner's share of mortgage payments which total about $62,000.00 to be deducted from his 1/3 share of sale proceeds.
Our new court date is May 3,2021.
Our lawyer has told us a number of facts but I am still un sure of how can the legal system work in such a strange method.
My question is why are we legally responsible for another person's financial commitments?
Do we have any legal ground to stand on against this credit union?
Please let me know what your legal advise would be?
Thanks Violet

I understand. I guess we will have to wait and see how good our lawyer is at presenting our side against the credit union.
Do you know if all banks, credit unions, and loan lending places have to adhere to a credit check for every loan process or is this a discretion decided by the loans officer etc?

Thank you. Your answer has helped

You as well