always broke

March 5th, 2012 by Questions

I have about $60k in unsecured debt, majority is credit cards. I have been sued and now threaten to take my house. Can they do this since is was unsecured? Is bankruptcy an option to protect my house as we need a place to live? There is about the same amount in equity in the house but i can’t get a loan with my credit now.

Posted from: Ontario


One Response to “always broke”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

Yes, your unsecured creditors can attach themselves to your house. The unsecured creditor doesn’t automatically have the right, they must first sue you, go to court and obtain a judgement. But that judgement gives them the ability to attach themselves to property or garnish wages.

In terms of protecting your house, a bankruptcy likely won’t be able to do that as there is no equity provision for a principle residence in Ontario, but the filing of a consumer proposal may be able to accomplish this.

To know for sure you are best to contact a local trustee in your area.

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