Grant Thornton Limited

1-888-455-6060

If I go bankrupt, will I lose my house?

Most people who go bankrupt do not lose their house. 

If there is a mortgage on your house, the payments are up to date, and remain up to date the mortgage company cannot seize your home. The same law applies with your car loan. 

If there is any equity in the house, you will also have to make arrangements with the Trustee.  Equity is the difference between the value of the house and the amount owing on the mortgage.  If there is equity, then you will have to pay the equity to the Trustee if you want to keep your house. This is because the equity in an asset available for your unsecured creditors.   In most cases, the person going bankrupt arranges a monthly payment to the Trustee to pay off the amount of equity.

You will likely have to get a valuation done on your house so that the Trustee can advise you. You should discuss your house situation, including the type of mortgage, with the Trustee in advance of filing for bankruptcy to help alleviate unnecessary stress and to get the proper advice. 

 

HenryFrancheville headshoulders 2016

Henry M. Francheville, CA, CIRP, Licensed Insolvency Trustee

 

Licensed Insolvency Trustees
Tel: 1-888-455-6060
www.freshstartatlantic.ca
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