Can Bankruptcy in Toronto Help You Keep Your House, and Save Your Marriage?
I recently spoke to a real estate agent, and she spoke told me about the staggering number of homes being sold under power of sale due to arrears on mortgage payments. She went on to say that this heartbreaking event all too often leads to marital breakdown. It is easy to see how this happens – young families, big debt and tremendous stress.
I agree with her comments as I speak to people on a daily basis who are dealing with issues like this. In the bigger picture the mortgage will often get behind as other unsecured debts also demand monthly payments.
There may be a better way to save both the home and the marriage. This is a very complex issue (more complicated than can be fully explored in a short article) but let’s review the basics.
Under the Bankruptcy and Insolvency Act a consumer proposal can be offered to your unsecured creditors. This means that credit cards, lines of credit and unsecured loans can be bundled into one manageable monthly payment. The interest stops on this type of debt and creditors lose the right to take collection action. Simply put, this could significantly improve the family’s cash flow and make room for the mortgage payments. There are a number of factors that have to be examined such as the amount of equity in the home, family net income, day care expenses and so on, so the decision to file a consumer proposal can only be made after an in-person consultation to allow us to review all of the facts.
Another interesting point that the real estate agent made was that rental properties are not easy to find and in some cases the rents are equal to or greater than mortgage payments. In the case of a separation of the family this could also mean two rental properties, support payments and even more stress.
We can’t begin to resolve this type of problem in a short article, but we invite you to call us at 310-PLAN, complete an online evaluation or send us an email and one of our professionals would be more than happy to discuss the options with you. We offer a free consultations so if you are wondering what to do next, let us help you develop a plan to deal with your debts.
