My husband and I are trying to decide what to do. We have narrowed it down to either a proposal or a bankruptcy.
We really have no other options. We had a business that we put everything we had into and it did not work out.
We own our home and this is the biggest thing we are worried about is our House.
What will happen with our House? Does it make any difference to your house if we file a bankruptcy instead of a proposal?
At September 17, 2008 |
7:17 am
, Barton Goth GCO Bankruptcy Trustees Said...
This largely depends on the amount of equity. If your equity is less than $40,000, then you have no problem as this is the amount allowed to be protected in the province of Alberta.
However, if you have greater than $40,000 in equity then there is value that legally belongs to the creditors. This means that somehow the trustee must realize on this equity and distribute it among the general body of creditors. This could mean selling the house, it could mean you take a 2nd mortgage against the house for the different, but either way the money must be realized on behalf or the unsecured creditors.
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