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If you file bankruptcy and have a home, there will be an equity calculation required. Essentially that is the value of the house, less the mortage balance. There is a $40,000 exemption for equity and whatever the value exceeds that amount is owned jointly by you and your spouse (provided you are both on the title). If she does not file bankruptcy she is entitled to her half but your creditors are entitled to yours. Transfers of the property or removal from mortgage can have an adverse effect and if done within 5 years of your bankruptcy are reviewable and can be overturned. A Trustee will review all these facts with you prior to filing.
Karen Rideout
phone: (403) 296-2973
Alberta Bankruptcy
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