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What Happens to My House if I go Bankrupt in Mississauga?
What Happens to My House if I go Bankrupt in Mississauga?
One asset that is always asked about is a house. What will happen to it in a bankruptcy?
Usually the family home is the most significant asset people have. Many of the people I meet with in Mississauga and Brampton have just purchased their first home and are worried that they may loose it in a bankruptcy. Not necessarily.
In a bankruptcy the issue is does the person have any equity in their house. This equity is then an asset for your creditors. Equity is the value you have in the home after you pay the mortgage company the amount you owe them and any other debts related to the house such as property taxes. Thus, if you have equity in the home and depending on how much it is, there are various ways to deal with this in a bankruptcy. It does not necessarily mean the house will be sold. There can be payments terms set up with your trustee to repay the equity value. The mortgage company you owe money to is a secured creditor and for most if you do not pay them they will take the house back. As long as you are current on your mortgage payments and stay current the mortgage company will not be involved in your bankruptcy. Again as a secured creditor, the mortgage company has other remedies available to it to recover the debt you have with them and do not need the bankruptcy process to do this.
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