What happens to equity in home on proposal?

November 28th, 2007 by Questions

Reading on Consumer proposals, we have a joint situation where myself, wife and mother in law purchased our home together. We have about $30,000 equity in the house. We have $88,000 debt together. We don`t have enough equity to consolidate, but also don`t want to go bankrupt and lose the house. Our combined annual is around $77,000. we have tried re financing but can not consolidate due to income level.

If a proposal is submitted over 5 years for 50% of debt, with monthly of $570 how would we deal with the equity? Does it get touched?

Questions

One Response to “What happens to equity in home on proposal?”


, Barton Goth GCO Bankruptcy Trustees said:

In a consumer proposal there is no vesting of assets like there is in a bankruptcy. However, a proposal must offer at least as much to the creditors as is available in a bankruptcy.

So you will need to meet with a trustee and have them determine how much would be reasonable (this is going to depend on the province you live, the number of people involved and your typical monthly income). Then they will be able to determine if the numbers you suggested above are realistic.

Although, depending on which provice you live in these numbers are probably in the ball-park.

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