If your debts are very large, you may be considering bankruptcy. If you own a house, here's what you need to know:
If you go bankrupt in Cambridge, the trustee is required to recover the equity in your house. For example, if your house is worth $150,000, and the mortgage is $130,000, then your house has equity of $20,000. (I am over-simplifying this example, because real estate commissions and other costs would be considered in determining equity). If you went bankrupt, you would be required to either pay $20,000 to the trustee (to be distributed to your creditors), or you would be required to surrender your house.
If you have a house with no equity, then you would not lose it if you went bankrupt, provided you kept making your mortgage payments.
If your house has equity, but not enough equity to refinance your debts, you could consider selling the house, or you could consider a consumer proposal as a way to deal with your debts but keep your house.
This is a complicated area of bankruptcy law, so I suggest you contact us to arrange a consultation so we can review your situation in more detail.
posted by J. Douglas Hoyes, CA, Trustee @ 8:49 PM
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