May 22nd, 2009 by Questions
Hi, I am considering bankruptcy and I own my house – not completely. If I declare bankruptcy, would I lose my house?
Posted from: Ontario
May 23, 2009 at 9:54 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
Although the different in each province, the basic concept is the same. You can’t keep a house in bankruptcy if you have a lot of equity (market value less mortgage balance less outstanding property taxes).
If the equity in your house is nominal you can usually make an arrangement with the mortgage company to keep paying your mortgage, and keep your house after filing bankruptcy.
If the equity in your house is significant your Trustee will be legally required to either seize your house and sell it, or make arrangements with you to repay your equity (perhaps by you borrowing from friends or family, or getting a second mortgage to re-purchase the equity from the trustee).
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