Equity in Home
What happens when someone with equity in their home files a consumer proposal? Will they lose the home or have to pay out their equity?
Posted from: Ontario
What happens when someone with equity in their home files a consumer proposal? Will they lose the home or have to pay out their equity?
Posted from: Ontario
You keep your house and pay out the equity via the proposal.
The idea behind filing a consumer proposal is to repay a portion of your debt – the amoutn you will repay will be greater than the amount you’d have to pay if you filed for bankruptcy. In bankruptcy, you have to pay out the equity in your house – the amount you will pay in a proposal will be greater than that amount.
So if you file a consumer proposal you get to keep your house, but you will have to pay an amount greater than the amount of equity you have in your house.
Use the links to contact a trustee and they will explain all of this in greater detail.