| Author: |
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Shaky Ground |
| Date: |
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April 16, 2002 |
| Question: |
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I have a line of credit secured against my home/160 acre farm.
Should I need to go bankrupt and the secured creditor exercises his
security, what will happen to any proceeds from the sale of the
house/farm in excess of the secured amount in Alberta? Will these funds
become part of the trustee's "funds" to distribute to unsecured
creditors or will they remain untouched, i.e. revert to me?
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From: |
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Ann Clarke, Collins Barrow Limited |
| Date: |
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April 17, 2002 |
| Answer: |
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In Alberta you are allowed to claim a $40,000 exemption for a personal
residence. If the bank forces the sale of your home you would be
entitled to up to $40,000 of any proceeds remaining and the rest would
go to the Trustee. You may wish to confirm with a lawyer, however,
whether or not a foreclosure will ever result in surplus funds.
Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca
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