Vehicle and House
I live in New Brunswick, and my husband and I are thinking of filing for bankruptcy, but we don`t want to lose our home. We have a first and second mortgage. the first for $123K, and the second for $34K, but the house would only sell for between $165K and $170K. We are able to afford the two mortgage payments, and expenses with some money leftover. Is there a chance they will let us keep the home?
Also, we have 2 vehicles. Black book values are, the first $2100, and the other $500. Is there any way we would be able to keep both? What would have to be done? Thanks.
Before you decide that bankruptcy is your only option, I think you should consider whether or not a consumer proposal might work for you.
When you file for bankrutpcy, your trustee is required to convert things like the equity in your home into cash for your creditors. If you are able, your trustee will allow you to pay an amount equal to your equity into the bankruptcy and your home will not be affected. If you can’t then the house may be at risk.
In a proposal you voluntarily agree to repay a portion of your debt, things like your house equity and cars are factored in, but they are not converted into cash.
Use the links to find a trustee in your area and give them a call so that they may review your options with you in detail.