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Two Mortgages on Two Properties

If I have two properties, both with mortgages that I can pay, plus an additional debt that I have trouble paying in full month to month, is the second property that I don`t live on included in the consumer proposal, even though I can make that payment?

Posted from: Ontario

One Response to “Two Mortgages on Two Properties”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

As long as you have no equity in the property it really wouldn’t impact the actual consumer proposal much. However, the one issue that may arise is the creditors who are being compromised in the consumer proposal may not like the fact that a portion of your income is being used for non-essentials (i.e. a second property) and may use that as a reason to not cooperate with the proposal.

This likely can be countered by making sure that the offer in the consumer proposal provides sufficient incentive to each of the creditors involved, but the level of that incentive you should discuss with a local trustee as it requires more information that available through this type of forum.