Bankruptcy Alberta

Author:		anonymous
Date:		July 9, 2009
Question:		I am thinking of filing for bankruptcy. Who ascertains the value of my house? The trustee? A realtor? Is equity defined as the value of the house minus the mortgage remaining on the house AND realtors' fees associated with selling the house? If the trustee sells the house is it likely to sell for less than if one were to sell it on their own? I mean, is it sold for a "fire sale" price? I suspect I may have about $50,000 equity in my house. What happens in my case -- does the trustee sell the house and turn all the money over to the creditors? Many thanks for your info.
From:		Karen Rideout, Grant Thornton Alger Inc.
Date:		March 20, 2008
Answer:		Generally you and the trustee would get valuations on the house and it's rare when they don't agree. If the difference is minimal, then a number in the middle of the two is usually appropriate. Equity is as you defined it with the exception that sale costs such as Realtor fees are more of a negotiated factor. If you are not selling, then full realtor fees wouldn't be appropriate. The Civil Enforecement Act of Alberta provides for a $40,000 home equity exemption and a Trustee would not see any benefit for creditors unless there was available equity over that amount. If the numbers you quoted are accurate, then equity appears to be minimal and a sale likely not an issue but rather you would contribute an amount that represents your equity. 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.

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