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home ownership

I am a single mother who filed for bankruptcy in Feb. of this year and own my home jointly with my mother, with my income being below what the Government considers the poverty level. At the time of signing and discussing my home ownership, I didnot have the $40,000.00 equity in it (believing that was I had made in payments). Now with my automatic discharge coming up next month, I was contacted by my trustee representative this month and told that because of the booming real estate market where I live I now have more than $40,000.00 equity in my home. They now want to settle the estate for more money. My questions are when is the property exemption determined at – is it the time of signing and becoming bankrupt or is it at the time of discharge? My second question is do they attend court (Is there not an automatic court date in nine months?) without notifing me and contest the discharge based on my home? Can I attend court and tell the judge how unfair this whole situation has become because of the real estate market. They are forcing me to take a second mortgage just to pay them and get discharged. Is there something I can do about this? Medicine Hat, Alberta

One Response to “home ownership”

Barton Goth GCO Bankruptcy Trustees said...

Unfortunately, based on a great deal of case law that comes out of Alberta, the equity exemption is no frozen at the date of bankrutpcy. This doesn’t necessarily mean it is at the date of discharge but the day it is dealt with (i.e. the day you provided a proposal to the trustee and an alternative arrangement was negotiated).

In terms fo application for discharge, you are notified and are eligible to attend to voice any concerns you may have.