March 12th, 2008 by Questions

My Husband and I owe about $50,000 on a credit line
We have a house, ( mortgage is with same bank as credit line—we don`t have mortgage insurance) a real estate agent says our house is only worth $79,000. We are paying on a mortgage of $89,000 over 27 years, mortgage renews in 3 & half years. We are having a hard time keeping up.
My question is: would we be able to keep our house and pay it of over the years, if we paid ($23,000 our RRSP)(less the Goverment interest) for the credit line, We live New Brunswick


One Response to “proposal”

, Barton Goth GCO Bankruptcy Trustees said:

First of all from the numbers you present your house would not be an issue, you have no equity so as long as you are able to keep the payments up to date you will have no problem.

AS for a proposal offering just your RRSP’s, you would likely need to make a few payment over time so that you would be providing a greater return than would be available in a bankruptcy, but realistically to determine what that would be you will need to sit down with a local trustee as they will be more familiar with local practices and procedures.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)