Will my family lose our house?
We are in debt with credit cards and credit lines (unsecured) to the extent of $60000. We bought our house 1 year ago and do not have enough equity to consolidate. We have tried to get a loan so we have 1 payment but were turned down. If we file bankruptcy will we have to give up our house? The payments and taxes are up to date. If we sell we would not get enough $ to pay the lender, lawyers and realator, in fact we would probably be farther in debt.
Posted from: Ontario
We are asked this question alot – if there’s no equity in your home (no matter how long you’ve owned it) when you file for bankruptcy then you will not be required to sell you house because of the bankruptcy.
Your trustee will ask you to consider whether or not you can afford to keep the house – if you want to stay in the house you must keep making your mortgage payments, utilities and of course your property taxes.
Another area of concern is how you used the credit cards – if you ran up the debt to buy things for your new house then there may alos be issues with filing bankruptcy – your trustee may suggest a consume proposal as a better (more reasonable) solution…
Use the links to contcat a trustee in your area and give them a call.