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can i keep my cottage?

Hi, I have a house with a mortgage appx $1000 and a cottage with a mortgage of appx $300. If I go bankrupt will I be able to keep my cottage as I can afford a low mortgage of $300 and I need it as a place to live. I lost my gov’t job.

Posted from: Ontario

One Response to “can i keep my cottage?”

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

The real issue isn’t the amount of your monthly payment on the cottage but the presence of any equity. If you have any equity in either the cottage or your other property then there is a very good chance that if you file for bankruptcy these properties would be lost. If there is equity you may be better to consider the filing of a consumer proposal instead as there aren’t the same provisions for the automatic vesting of non-exempt property.