What happens to my home’s equity if I sell it after declaring bankruptcy? I am a co-owner of our principal residence in Saskatchewan. What happens to the equity in the house if it is sold after I file bankruptcy?
There would be approx $30,000 equity between two of us. My co-owner is not declaring bankruptcy.
Do I have to turn over my share of equity to the bankruptcy trustee?
You are entitled to the equity in the home as set by Saskatchewan’s bankruptcy exemptions:
Since your home’s equity is below the equity set by your province you can keep your equity of $15,000.00.
As a courtesy, please keep the trustee up to date with your plans.
Earl Sands, Licensed Insolvency Trustee