Switching from Proposal to Bankruptcy – Will we lose our House?

February 24th, 2014 by Questions

We own our home, a value of approximately $650,000. We are in a consumer proposal with a balance of $67000 and cannot make those payments. Our mortgage is $405,000.It is very difficult to sell at the moment and we would like to know if we would lose our house if we file bankruptcy. Our Trustee has not been helpful as we told him that amount was too high but he told us if we did not pay the $1780/month we would lose our house. What can we do?

Posted from: Quebec


One Response to “Switching from Proposal to Bankruptcy – Will we lose our House?”

, Jillian Taylor-Mancusi, Trustee | B.A. | C.I.R.P said:

In the event of a bankruptcy the trustee will realize on the equity in your house for the benefit of your creditors. It appears that not withstanding the amount of the first mortgage and the allowable exemption for a residence in Quebec there is substantial equity in the house. You may be well advised to come up with the payment even if it means selling or encumbering the house.

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