Understanding Bankruptcy and Home Ownership in Alberta
Declaring bankruptcy in Alberta involves working with a Licensed Insolvency Trustee to assess your debts and file the necessary documents to initiate bankruptcy proceedings. The Bankruptcy and Insolvency Act governs the bankruptcy process, and determining whether a debtor can retain their home during bankruptcy depends on several factors, including:
The amount of equity in the residence
The value of the home
The amount owed on the mortgage
The debtor’s ability to make mortgage payments
It is important to consult with a Licensed Insolvency Trustee to understand Alberta’s specific rules and regulations regarding home ownership and bankruptcy.
It’s a common misconception that declaring bankruptcy automatically means losing your home. While this may be true in some cases, strategies and specific exemptions are in place to help homeowners retain their properties. We will explore further the bankruptcy declaration process and how it may affect home ownership in Alberta.