Do I Lose My Home When I File For Bankruptcy

2010-03-19   minute read

 There are a list of assets that you get to keep if you file for bankruptcy. There is a federal list and a provincial list. The rules surrounding a residence are governed by this provincial list. It is called the Civil Enforcement Act in Alberta, and the assets you get to keep are called "exempt". In Alberta, you are allowed to retain $40,000 equity in your residence when you file for bankruptcy. Equity is defined as the current fair market value of the house less any secured charges against it (IE: mortgages, secured lines of credit and property taxes owing). So for example, if you have a $350,000 house and a $300,000 mortgage against it, you have $50,000 equity in the property. You are allowed to protect $40,000 of this in a bankruptcy. The other $10,000 is negotiated and the final amount must be contributed to the bankruptcy. If you have less than the $40,000 equity, then so long as you make your mortgage payments you will keep the property. If you would like further information about your specific situation, or to set up a time to meet with someone, don't hesitate to call me or one of our counsellors/Trustees in your area. They are on our site at Donna Carson, CGA, CIRP, Trustee Calgary and Central Alberta regions 1.877.500.0792 [email protected]

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