Property out of Canada

October 17th, 2007 by Questions

I inherited a small parcel of land in another country approximately 20 years ago. This land which I was contemplating to live on when I retired is worth today $25000 at the most. Now, after the loss of a good paying job, marital break up and bad investment decisions I am looking to bankruptcy as my only way out to re-start all over again (although time is against me because of my age). I owe about $60000 on a line of credit and two credit cards.
Will the banks force me to dispose of that property even though it may be quite expensive for me to do that (traveling, loss of income, real estate costs, etc.) and it will also be difficult to sell in a slow moving market?.
Does the trustee have the authority to dispose or not to dispose of that property?
Thank you


One Response to “Property out of Canada”

, A licensed trustee said:

The short answer is yes, if you file an assignment in bankruptcy you give your trustee the right to seize and sell all of your assets where ever they may be. Your trustee has the right (in fact obligation) to determine if the asset should be sold for the benefit of your creditors. If the cost to seize and sell exceeds the value of the asset then likely your trustee will decide not to act.

This is something that you need to discuss with your trustee BEFORE you file your assignment in bankruptcy – you don’t want to be argueing about this property after the bankruptcy has started as your rights are severely limited once you sign.

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