Need Advice

I had previously posted a question a while back and got wonderful advice.

I am hoping that you could the same in this case. Pleas all I am asking for is just an opinion since as you might say you are not familiar with the specifics of the case.

I filled for bankrptcy more than 3 years ago and got discharged. However, the lawyer for one of the creditor`s whom I owed about $20,000 kept insisting on getting the money saying that there is equity on the house I own. The equity on the house at the time of my bankruptcy was about $10,000 as per an appraisal done by the turstee. The turstee transferred the title of the house to their name. I have been asking the trustee since the begining to come to an agreement with the creditor so I can pay the equity and have the title transferred to me. They have been going back and forth for the past 3 years. My mortgage is up for renewal so the trustee really wants to settle this and transfer the tilte back to me. Now the creditor is insisting to go with the value of the house as of today. Obviously the value has gone up and since I have been making mortgage payments the mortgage amount has gone down.
Please, let me know is it legal to consider the value of the house as of today or do they have to go with the value at the time of the bankruptcy. I need to mention that I have small child.

Posted from: Ontario

One Response to “Need Advice”

Barton Goth – Goth & Company Inc. – Bankruptcy Trustees said...

This is a compliated issue and one I would recommend discussing with an insolvency lawyer. What you will find is that the trustee has an obligation to administer the process property, not look out for your interest, as a result I would suggest considering having someone advise you from a legal standpoint what would be best.

In terms of my opinion, there is a great deal of conflicting case law out there on this issue, most of it originating out of Alberta most recently (where I practice) that suggests the value of the house is the date that it is dealt with by the trustee. So if during the bankruptcy you and the trustee came to an arrangement, had an appraisal done, signed off on the value that would be used, then the day that was done would be the day that the valuation would relate to. However, if that was never done, the trustee simply registered against title and it has sat there ever since, then today’s values would be the appropriate one (although there is a good legal argument that the payments you have made over the last couple of years should be deducted out of the amount you need to pay).