March 28th, 2011 by Questions
What happens to my home if I declare Bankruptcy in Ontario if I have a secured line of credit, no mortgage, on the property?
Posted from: Ontario
March 28, 2011 at 5:31 pm, A licensed trustee said:
Your home is only at risk if you have accumulated equity in the property and you can’t afford to pay your trustee that equity. Whether you have a mortgage or a secured line of credit doesn’t matter – what matters is how much money may be left for your unsecured creditors i fyour home was sold.
A word of caution – if your line of credit is for $100,000, but you’ve only used $10,000 then the trustee will use the balance you owe ($10,000) when determining whether or not you have any equity.
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