Most people I see in the Mississauga area are concerned about their house and what will happen to it if they file for bankruptcy. Many of them don’t want to file for bankruptcy or even discuss it because they are afraid they will automatically lose their house.
When you file for bankruptcy and you own a house, the question that will be asked is, how much of your house do you own, or how much equity or money do you have in the house?
In order to file for a bankruptcy or a consumer proposal, you need to figure out how much equity or money is in your house. This is based on what the market value of your house is, or how much you could sell it for, minus the amount of money that you owe on the mortgage.
If you don’t have any equity in your house, it won’t be an issue in your bankruptcy. If you do have equity in your house, you might have a lot more options when it comes to paying off your debts.
So, typically, when you come to see me in my office, I’ll ask you to bring in a mortgage statement for every mortgage on the house, and the market value of the home. Once we have figured out how much equity, or money is in your house, then we can start discussing your options, including debt consolidation loans, consumer proposals, and bankruptcy.
Don’t be afraid to make a plan for your debt because of your house. Think of your house as an asset that may be able to help you deal with your debts.
For more information about how your house could affect your financial situation, call me at 310-PLAN to set up a free consultation. You can also email me any questions you might have. The sooner we get started on the right plan for you, the faster you can start living a healthy financial future.
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