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I have a farm (not my main income source).
Question 1: how does livestock figure into bankruptcy? My livestock is jointly owned with another person who is NOT filing for bankruptcy
Question 2: The family home is on the farm property of 20 acres. Will the home be taken? The home is jointly owned with other person NOT filing for bankruptcy.

Posted from: Alberta

One Response to “farming”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

If you file for bankruptcy in Alberta there are a number of exemptions that are available to a farmer. The problem is that in order to qualify for these exemptions farming has to be your “primary source of income.” As your primary income is not derived from farming you do not qualify for any of these exemptions. The only exemption that would be applicable would be for your principle residence. You are allowed to have up to $40,000 equity in your principle residence, divided by your percentage of the ownership stake (i.e. 2 people on title, you have 50% ownership stake and therefore have 50% of the exemption or $20,000).