Repossession of house

I got a letter from the bank stating they will repo my house if we don’t pay our debt in full which we can’t. We are considering bankruptcy, will we lose our home?

One Response to “Repossession of house”

Desmond West-Chow, CIRP, Trustee said...

It depends on the way which the bank plans to foreclose on your home. If they’re threatening to foreclose because they have your mortgage and you’re not up-to-date on that, then the bankruptcy can’t stop them and you may end up losing your home to the bank. What the bankruptcy could help you with in this situation is free up some cash flow in regard to your other debts in order to allow you to make arrangements to catch up on the mortgage with the bank. If the bank has sued you and placed a writ of enforcement on your home, the bankruptcy would stop that and give you some options on keeping your home. In both circumstances, a discussion with a local trustee in bankruptcy is recommended as keeping your home in a bankruptcy depends heavily on provincial law. In most scenarios there may be options that exist in order to keep your home.