Equity in a House and bankruptcy. What is best?

Posted on Wednesday, July 2, 2008

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I own a 1300 square foot house. The house is worth about $340k (according to a real estate agent) and I owe about $310k to the bank on a mortgage. I have about $75,000 in credit card debt that I cannot afford to pay. Is it better for me to keep the house or sell it. The way I figure it is that if I sell it I will only have about 15 - 20k to use for my debts and it is not enough. Can I keep my house and file for bankruptcy?

Filed under: Bankruptcy
 posted by Questions @ 9:18 am
1 Expert Comment:

 At July 4, 2008 | 2:13 pm , Barton Goth GCO Bankruptcy Trustees Said...

This really depends on whether or not you can afford to keep the house. If it is affordable you may want to consider filing either a bankruptcy or a consumer proposal to deal with the credit card debt. By filing either of these options you won’t have any impact on your residence as all the equity would be considered exempt under the Civil Enforcement Act of Alberta.

For more information on why your property wouldn’t be affected by a bankruptcy or a proposal you are best to contact a local trustee and they will be able to explain how the provincial exemption laws work.

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