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What if I own 2 houses and have to file bankruptcy?

How does it work when i file bankruptcy and I ‘m paying two mortgages or owning two houses?

Posted from: Ontario

One Response to “What if I own 2 houses and have to file bankruptcy?”

Jillian Taylor-Mancusi, Trustee | B.A. | C.I.R.P said...

When you file an Assignment in bankruptcy you, by definition will be insolvent. This generally means that the sale of your assets will be insufficient to pay off your debts. Your assets, other than those exempt from seizure or completely encumbered or secured, become assets of the estate and will be dealt with by the trustee. What happens with your two houses will be determined by whether or not there is any realizable value in either property. Further, you need to make a decision as to whether or not you can afford to keep two properties even if there is no equity.

These types of questions are very difficult to answer without exploring all of the details of your circumstances. An in-depth assessment with a trustee in bankruptcy should be your next step.