Joint property if husband files for bankruptcy???

Posted on Wednesday, March 19, 2008

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My husband is a small contractor and work has been quite slow lately, which is surprising when we consider the amount of work out there. Anyway, he has now built up quite a bit of debt on a couple of credit cards, most of which was used to run the buisiness. To make matters worse he also owes Rev Can about $26000.

Up to now he has always paid each of his bills on time, but has only been making the minimum payment and as a result he keeps falling further behind.

Now for my biggest concern. If he files bankruptcy, is our house in jeopardy? We jointly own our own home. What about the contents?

Filed under: Bankruptcy
 posted by Questions @ 7:28 am
1 Expert Comment:

 At March 26, 2008 | 8:42 pm , Barton Goth GCO Bankruptcy Trustees Said...

This is going to depend on how much equity is in the house (value less any mortgages). In Alberta you are permitted to have up to $40,000 equity in the house and as long as you are able to keep up to date on the mortgage payments you shouldn’t have any issues. But if you have greater than this level the trustee will be obligated to realize on this. This can be done with a sale of property, re-puchase of the equity or something similar.

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