clear credit cards debt but keep my home

January 9th, 2008 by Questions

if i just want to get rid of my credit card debt,will i lose my home?i will still continue to pay my mortgage.i just want to lose my credit cards..

Questions

One Response to “clear credit cards debt but keep my home”



, Barton Goth GCO Bankruptcy Trustees said:

This really depends on the value of the property, the amount of your mortgage and the province you live.

If the equity in your house (value less mortgage) is less than the amount of the provincial exemption allowed (which varies significantly by province i.e. Alberta is $40,000 compared to Ontario which is $0.00) then you have no issues and can continue to pay the mortgage and have no impact on your house.

However if the equity exceeds the provincial exemption then you may have to pay a little more in a bankruptcy setting.

At this point it is best you contact a local trustee to determine the provincial exemption available in your province and given that how a bankruptcy will affect things.

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