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| Author: |
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Jason |
| Date: |
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March 3, 2005 |
| Question: |
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My wife and I both own a home with 200,000 equity. The home is still under mortgage for 50,000. I owe about 50,000 in credit card debts. using the 40,000 rule, If I declared bankruptcy, would I be forced to sell the house and pay the trustee $50,000 to settle my debts?
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From: |
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Ann Clarke, Alger & Associates Inc. |
| Date: |
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March 3, 2005 |
| Answer: |
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If you have more than $100,000 equity in your home you are not really insolvent and bankruptcy isn't likely an option for you. If you were to file, however, you would be required to pay your portion of the non-exempt equity to the Trustee. That could involve remortgaging the home or selling it.
Ann Clarke
phone: (403) 296-2972
aclarke@alger.ca
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