The answer is “it depends”. If the house was a recent purchase and you did not put a lot of money down, then probably not. You have to have your mortgage up to date with the bank and keep it current. If you don’t, then the bank could take the house. If you have had your house for many years and you could make money if you sold it (you have equity in your house), then bankruptcy is probably not for you.
If you file for bankruptcy you surrender your assets (subject to certain limits) to the trustee. Equity in a house is considered an asset. You won’t lose your house, but you will have to pay the equity to your trustee. In a lot of cases this can make bankruptcy not very practical. A lot of people in that situation then consider filing a consumer proposal.
To review your options in detail, please call me or email a question.
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