Selling house in bankruptcy

Author:		anonymous
Date:		March 18, 2008
Question:		Hello, thanks for your help. I am wondering if I file bankruptcy, and then I later am forced to sell my home. Do I have to give them a portion of the sell? Also, after everything is final, say we get a good job and make a little extra money, will I have to give them more than the amount we have arranged to pay to them?
From:		Karen Rideout, Alger & Associates Inc.
Date:		March 20, 2008
Answer:		If you file for bankruptcy and the equity is determined at the date of bankruptcy, whatever portion is considered non-exempt will have to be dealt with at that time. You are protected for $40,000.00. If the value goes up after the valuation is performed due to market conditions, is not relevant nor are the creditors entitled to it. The only exception is if you do not complete your duties and become discharged, then it's a whole new ball game. The income you report during your bankruptcy is what payments are based on. If you become discharged then reporting of income is not required any further. Karen Rideout phone: (403) 296-2973 karen.rideout@ca.gt.com Click here to submit a question to the Alberta Bankruptcy Q&A forum If you wish to talk to one of the Alberta bankruptcy professionals at Grant Thornton Alger Inc., you can call us TOLL FREE from anywhere in Alberta at 310-8888. After hour appointments at our Alberta bankruptcy offices are available. Contact our Alberta bankruptcy trustees for a free initial consultation