House titlement and code of ethics on behalf of a company
Am I required to sign my house over during bankruptcy, especially if there is Excess equity in it? Are companies allowed to threaten jail term and use scare tactics to obtain extra money?
Posted from: Alberta
If you file for bankruptcy in Alberta you are permitted up to $40,000 equity in your principle residence. You are correct that if you have equity in excess of this $40,000, when you file for bankruptcy this excess equity must be realized upon for the general benefit of the unsecured creditors.
In terms of the actions that are being taken by your creditors in an attempt to collect the outstanding monies they are owed, it is very likely that they are going beyond what is allowable under the The Fair Trading Act and the Collection and Debt Repayment Practices Regulation.
If you feel that the collections department has exceeded their rights you need to get as much information as you can about the person collecting the debt (name, agency, collection license number) and contact the Alberta Government Services – Consumer Services Division:
(780) 427-4088 or 1-800-427-4088.