If you file personal bankruptcy any equity that you have in your home becomes property of your bankrupt estate.
When you make a consumer proposal, your home and related equity is unaffected. The trustee and creditors will not take possession of your property and you will be able to keep any house equity that you have accumulated.
When you make a consumer proposal, what you are essentially saying to creditors is, “you let me keep my home and I will make payments to you through my proposal.” This results in a win/win for debtors and creditors. The debtor is happy because they are allowed to keep their home and the creditors are happy because they are receiving payments and getting more than what they would if the debtor were to file for bankruptcy.
If you are in debt and want to talk to us about the best option for you, contact our office and book a free initial consultation with one of our licensed trustees in bankruptcy.