April 5th, 2013 by Questions
Can I continue to pay on my home and keep it if I go bankrupt
Posted from: Newfoundland and Labrador
One Response to “Boggleboggle”
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April 05, 2013 at 11:27 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
There are two things that are important in determining this. First, is the amount of equity in the property. Second, is your ability to make the mortgage payments and keep current on your property taxes.
The way the bankruptcy rules work you are permitted to keep property if the amount of equity in the property is less than the level that is set by your provincial government (and in Newfoundland and Labrador the amount is set at $10,000). So if you have less than $10,000 in equity (market value less amount owing on the property), then you are able to keep the house as long as you have the ability to continue to make the mortgage payments and pay your property taxes.
If you have more than $10,000 equity it doesn’t mean that you are guaranteed to lose the house, but you should talk to a local trustee in that case as there is too much for me to cover in this post.