Also we have a line or credit with a finance company that is backed by the equity in our home. If we file on that line of credit can the finance company take our house or make us sell it? We have about $30,000 equity in the house and owe $10,000 on the line of credit.

Our home is currently up for sale. Can the money from the sale of the house be taken from us if the house sells before the bankruptcy is over in 9 months? Would we be better off waiting to sell it until then?

Yes, the bank can go after a co-signor if you file bankruptcy. When you file, you must include all debt so this loan would have to be included.

Normally, if you are up to date with the finance company, they will be happy to continue getting the payments and will not want to foreclose. Whether the house is exempt depends on the province you live in.

To obtain a free assessment of your complete financial situation or if you have any further questions, please contact me using the information below.

We also have offices in Edmonton (780.414.1133) and Red Deer (403.350.2266) or call us on our toll free number (310-8888). If you do not live in Alberta you can contact a Trustee in your area by looking in the yellow pages under "Bankruptcy".

Shane Brenneis
phone: (403) 298-1575
sbrenneis@collinsbarrow.com