FILL OUT THE FORM BELOW AND RECEIVE A NO-OBLIGATION CONSULTATION

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If you have unsecured debt of under $10,000 and live in the Province of Ontario filing bankruptcy may not be the best option for you. We suggest you contact the Office of the Superintendent of Bankruptcy at 416-973-6441 to discuss your options, or you can visit their website here.

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Home Equity Calculation

Are real estate agent commissions, lawyer fees and mortgage penalties considered when calculating one`s `equity` in a home during a bankruptcy filing? Once these costs are subtracting the remaining balance from the home sale is approx. $5000.00 with an unsecured debt of $40,000.00. Would this amount be considered enough to warrant a forced sale?

Thanks in advance for any clarification.

Posted from: Nova Scotia

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One Response to “Home Equity Calculation”

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

Technically speaking when looking at the filing of a bankruptcy and the equity in the residence, the costs of sale must be negotiated directly with your trustee. Now most trustee’s are reasonable when dealing with these types of situations and would much prefer to come up with an amicable arrangement for you to re-purchase any equity directly from the bankruptcy estate. So if you were to pay the $5,000 to the trustee in place of the sale of the house then you wouldn’t have any issue, but if you were not willing to do this it is very likely that the property will have to be sold.