June 30th, 2009 by Questions
If I file a division 1 proposal can I keep my house. I have equity of about $30,000. Would I have to buy this back?
Posted from: Ontario
July 01, 2009 at 9:16 pm, A licensed trustee said:
The concept behind a proposal is that you are offering to repay a portion of your debts – the catch is you need to offer your creditors more money than they would receive if you filed for bankruptcy.
In a bankruptcy, the equity in your home must be “bought back” from your trustee if you want to keep the home. In a proposal, you are voluntarily offering to repay more than that as part of the deal.
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