Alberta Bankruptcy

Author:

Anonymous

Question:

we bought an acreage last year for $60000.00. we have put a lot of blood sweat and tears into it. There is no house on this properrty (we live in town in a house we can't afford to sell.....we owe more than its worth). I believe the property is woth at least $100000.00 now. would we be able to sell it to a family member for what is owing just to get it off our debtload?

From:

Alger & Associates Inc.

Date:

Sep 08, 2010

Answer:

The property (land) is not exempt as it is not your principle residence and selling it to related party will only work if you sell it for fair market value. Getting an appraisal or an evaluation is key at this time if that is the route you take. Trustees have the power to overturn any sale transaction that was less than the appropriate value in particular if it was done with a related party.

Karen Rideout
phone: (403) 296-2973
krideout@alger.ca