Homeowners in debt may need to file personal bankruptcy – How We Helped
I met with a couple that was buried under a mountain of debt and owned their home. They were:
- Unable to pay their debts
- Receiving harassing collection agency calls
- Worried about losing their home
How we helped
We reviewed their options and decided that:
- They didn’t have enough income to make a consumer proposal
- Their only option was to file personal bankruptcy
However, they were afraid of how it would affect their ability to keep their home. They were relieved when I explained to them that:
- Filing personal bankruptcy did not mean that they would lose it
- Creditors were only interested in the amount of equity available if the property was sold
We determined that they only had a few thousand dollars in home equity based on:
- The current value of their property
- Their current mortgage balance
- Deducting sales costs
How could they file bankruptcy AND keep their home?
They had to agree to make monthly payments - totalling the amount of their home equity - during the term of their bankruptcy.
Where are they now?
With our help, the collection calls stopped, they’re on the road to financial recovery and were able to keep their home despite having filed personal bankruptcy.
We can help you be debt-free too – contact us for a free consultation.