The ability to keep your house when filing for bankruptcy depends on several factors. One of the premises of the Bankruptcy and Insolvency Act is that to get a release from their debts, the bankrupt must give up some of their assets. One of those assets is the equity or value in the home.
First a determination needs to be made of the state of the mortgage. If mortgage payments are in arrears the mortgagee can start or continue “power of sale proceedings” to sell the house. Bankruptcy proceedings will not be able to stop a mortgagee from commencing or continuing power of sale proceedings.
Next a determination must be made to see if there is any equity in the home. In other words, is the expected selling price of the house more than the outstanding mortgages, taxes and condominium fees (if applicable)? Depending on the amount of the equity, arrangements might be able to be made for you to “buy-back” the equity from the trustee so you can keep the house.
If the mortgage is in good standing, and either there is no equity or you are able to buy back the equity from the trustee you will be able to keep your house.
Please contact one of our MNP offices to set up an no-cost, no obligation consultation where we will assist you to review your options and find the solution that works best to solve your financial problems.
Want to learn more?
Contact Rob Today!
