Hello, I am looking into the filing of a bankruptcy, but I have property in BC and Alberta (I live in Alberta). I have been told that neither of these properties is going to be at risk, but that sounds to good to be true.
Please let me know, this has got my confused and overly stressed
real estate and bankruptcy
posted by Questions @
1 Expert Comment:
At September 23, 2009 |
7:38 am
, Bart Goth, Trustee in Bankruptcy Said...
This really depends on the amount of equity in these properties.
Let us deal with the Alberta property first, if you live in the property and have less than $40,000 equity in the property there is a principle residence exemption that you would qualify for. Meaning, if you have less than $40,000 equity in the property it is not going to be impacted by the filing of the bankruptcy.
In terms of the second property, the one in BC. If there is any equity it is not protected and would have to be realized on (i.e. sold as part of the bankruptcy).
Either way it is important to look at the specifics of both of these properties so I would recommend you contact a local trustee to discuss things in more detail.
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