Seizure of principal residence

September 14th, 2005 by Questions

My common-law husband is thinking of declaring bankruptcy, but is afraid that the bank can seize our home. The mortgage is in both our names, as is the house. We have $15 000 of equity in the house (a new mortgage issued in March). We also owe this same bank $40 000 in debt. What are our rights and what are the creditor’s rights? Can they force us to sell our home?

Questions

One Response to “Seizure of principal residence”



, A licensed trustee said:

The answer will depend on your province of residence. I suggest you use the Find A Trustee link on the side of this page to contact a trustee in your province.

In most cases the bank will not take your house if you are bankrupt, as long as the mortgage payments are being made. However, if there is equity in the house, the trustee may require the bankrupt to pay their share of the equity into the bankruptcy estate for the benefit of the creditors. A local trustee can explain this in more detail.

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