If you are insolvent, then you are eligible for declaring bankruptcy in Peace River, Alberta.
You become insolvent if the total value of your assets is less than the money you owe in debt.
If you feel burdened by your debts, then bankruptcy might be a solution for you.
MNP Peace River bankruptcy firm, however, recommends that you consult one of our Licensed Insolvency Trustees (LITs) before filing for bankruptcy.
MNP Limited Peace River, AB Licensed Insolvency Trustee
Even the Government of Canada recommends that you do so.
LITs at our MNP bankruptcy firm in Peace River are consulted by thousands of Canadians regarding bankruptcy and its consequences.
A common question that our clients raise is regarding asset exemptions during bankruptcy, especially that of a house.
What Happens to my House if I File for Bankruptcy?
Contrary to popular opinion that you lose everything including your home after filing for bankruptcy, you can keep your home provided you meet certain conditions.
You can keep your home if the equity on the property is below or equal to the value exempted under Alberta law.
Bankruptcy exemptions enumerated under Alberta law are governed by the Civil Enforcement Act of Alberta.
According to the law, an equity amount of up to $40, 000 is exempted on your main residence.
If you are a co-owner, the extent of exemption is calculated for your share in the property.
(Note that exemption values are liable to revisions. Our LITs are up-to-date with the law.
In case of revisions, they can recommend appropriate actions accordingly.)
The equity amount on your home is calculated by deducting your mortgage debt and liabilities such as legal fees, real estate commissions, and property tax currently payable, from the total value of the property.
If the sale value of your home is $200, 000, the mortgage debt is 150, 000, and the above-mentioned liabilities amount to $20, 000, then the equity would be:
$200, 000 – ($150, 000 + $20, 000) = $30, 000.
This amount is less than the legal exemption value.
You could keep your home in this case provided you are regular in your mortgage payments and have made your current payment.
You should continue making your mortgage payments regularly even after declaring bankruptcy, to keep your home.
If you default on your payments, you mortgage lender can initiate a foreclosure.
Losing your home need not be an inevitable consequence of bankruptcy.
With a well-knowledgeable local licensed trustee such as the experts at MNP Peace River bankruptcy firm, you can explore your options and arrive at the best solution.
Our firm is located in the heart of the town and offers free parking space.
Visit us today to discuss your debt problems and discover reliable solutions.
Peace River AB T8S 1J5