| Author: |
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Ali |
| Date: |
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May 17, 2001 |
| Question: |
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Currently my father is in about $50,000 worth of debt to credit card and department stores. We purchased a house 1 year ago that me and my mom are also co-owners of (our names are included in the bank to be able to get the mortgage). This house is our principle residence. If he declares bankrupcy, will we lose the house and will he be free of the $50000 worth of debt?
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From: |
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Ann Clarke, Collins Barrow Limited |
| Date: |
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May 22, 2001 |
| Answer: |
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In Alberta there is an exemption of $40,000 for a personal residence. If your total equity (value left in the house after deducting the
mortgages)does not exceed that amount then your home should not be affected by a bankruptcy, provided the mortgage payments continue. And yes, bankruptcy discharges unsecured debts such as credit card and department store debts.
Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca
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