April 30th, 2007 by Questions

Between myself and my wife we have a combined debt of approximately $120.000 . Due to the loss of a good paying job we find ourselves contemplating bankruptcy as an alternative.
About 10 years ago we bought a property in Costa Rica for our retirement. This property is worth now around $90.000 and is fully paid.
If we file for bankruptcy, do we have to surrender this foreign property?.


One Response to “Ryan”

, Barton Goth GCO Bankruptcy Trustees said:

When you file for bankruptcy in Canada all of your assets, wherever situated, vest in the trustee, with the exception of the items given an exemption by provincial legislation. As far as I am aware, across the country, the only exemption permitted for real estate is a principle residence exemption and to qualify for this you must be currently residing within the property.
Therefore, if you filed bankruptcy, you would not be able to claim this property as exempt, it would vest in the trustee and must be sold so the proceeds could be distributed to the people who are legally entitled to these funds (i.e. your creditors).

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