You will not lose your home as a result of the bankruptcy process provided that you can maintain your mortgage payments and there is not a significant amount of equity in your property. Your creditors do not want your house, and they do not want to force you to sell your house. They are only interested in the equity which might exist in the property if it were sold. If there is no equity in your property then your creditors have no interest in your property. If there is a small amount of equity in your property you can keep the property provided that you are able to pay that amount to your creditors. If there is significant equity in your property other options, including filing a consumer proposal may be advisable.
There are some cases where the house is the cause of the financial strain. In these cases filling bankruptcy can help to eliminate the burden and provide you with a way to walk away from the property and get a fresh start. If your mortgage balances are more than the property is worth, or you cannot afford the monthly payments, walking away from the property could be your best option.
If your vehicle has less than $5,650 in equity, it is exempt from seizure through the bankruptcy process. If your vehicle has more than $5,650 of equity, you can keep it, but you are required to pay the amount in excess of the exemption.
Once you’ve recognized that you need financial help, the next step is to meet with a Licensed Trustee to review your situation. Our Trustees will explain the bankruptcy process to you in detail as well as your other alternatives so that you can make an informed decision. You can use our Debt Options Calculator to review your other alternatives.
To find out if filing personal bankruptcy is right for you, set up a free consultation with a Welker & Associates Licensed Trustee. Welker & Associates has offices throughout southwestern Ontario where we can help you begin working towards resolving your debt issues.
Remember, no one wants to file for bankruptcy, but a plan to resolve your debt issues is the first step to getting back on track.
