Bankruptcy Question & Answer Forum - Canada

Author:		Anonymous
Date:		December 20, 2005
Question:		I own a home (no mortgage) with an appraised value of $40,000 (yes, only $40k in small town Alberta). I took a job in the city and am renting. Is my small town home considered my 'principle residence' or do I have to live there a certain amount for it to be considered my 'principle residence'?
From:		Bruce, Alger & Associates Inc.
Date:		December 21, 2005
Answer:		It could be your principal residence but, this really depends on your actual circumstances. If you are temporarily living in the rented house then perhaps your small town house is your principal residence. Where do you get your mail? Where are the majority of your possessions? Where do you spend your time off? If you can answer that in all cases it is your owned home, then you may be entitled to the exemption. Of course, you could claim the exemption and have it challenged by a creditor. In that case the claim might end up being decided by a judge. Bruce Alger phone: (403) 296-2970 balger@alger.ca