You must not lose your property in the event that you get bankrupt. In the event that you carry on making your home loan repayments the lender cannot foreclose or repossess your property.
Area 84.2(1) stops guaranteed creditors from repossession assets entirely as you file individual bankruptcy. If you default on the funding agreement or safety contract other means.
As an example: if you default from the payments for the home loan then your bank can foreclose on your own house.
If you have equity (can be your house worth a lot more than the home loan debt in your house) you will want to pay that equity to your Trustee in Bankruptcy for the advantage of your unsecured creditors.
In a few provinces, there is certainly security for many for the equity in your major residence. Nevertheless, there’s no security for equity in your principal residence in the event that you inhabit brand brand New Brunswick, Nova Scotia or Prince Edward Island.
The first $40,000 of equity in your home is protected from unsecured creditors for example: In Alberta.
You should contact a Trustee in Bankruptcy (Licensed Insolvency Trustee) to review your options if you are having difficulty paying your debts.
Powell Associates Ltd. is A licensed insolvency trustee. We have been skilled, hands-on insolvency professionals whom realize the individual impacts of major economic anxiety;
You’ll not be stuck within an construction line procedure.
You may expect and get prompt reactions and quality of dilemmas from our supportive and team that is experienced.
We are going to review your financial troubles solution choices, including filing a customer proposition or bankruptcy that is personal.