 |
| Author: |
|
James |
| Date: |
|
November 11, 2004 |
| Question: |
|
My parents are considering bankruptcy. They have debt in excess of $100,000. Currently, I jointly own our home with my parents as well. If I was to assume the entire ownership of our home by buying my parents out, and they were to still file bancruptcy would the creditors come after me for the share of the house they used to own. Thanks for your help.
|
| |
|
|
 |
From: |
|
Ann Clarke, Alger & Associates Inc. |
| Date: |
|
November 15, 2004 |
| Answer: |
|
Firstly, in Alberta you are allowed $40,000 equity in a personal residence. Therefore, if the equity is less than $40,000 your parents do not have a problem and can keep the home. If the equity is greater than $40,000 and you buy the house from your parents you must pay them fair market value. If not, there are provisions under the Act whereby the Trustee could go after the home or the value of their share over $40,000.
Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca
|
|
