Beaudin Groupe Conseil - Demystifying debt, credit

Where will we live? Losing the house, really?

Let's break a myth! Filing for bankruptcy doesn't automatically mean "losing your home." The decision to keep or not to keep your house depends on several factors, including the home's value, the remaining balance on the mortgage, the costs associated with a potential sale, and if you can and are willing to retain ownership.

Here are some things to consider:

•    Equity of the house: If the home's value exceeds the mortgage and the costs associated with the sale, the licensed insolvency trustee can sell the house and use the proceeds to repay creditors.

Depending on the calculation and if the equity is reasonably low, it may be possible to negotiate with the trustee to buy back the equity and retain ownership.

•    Expected expenses: If you choose to keep your house, don't forget to consider the costs and expenses, including:
 o    Property taxes
 o    Maintenance
 o    Insurance
•    Mortgage loans: If you decide to keep the house, you will need to continue making mortgage payments even during the bankruptcy process; otherwise, the bank will initiate a foreclosure procedure. This can be done even after bankruptcy.

Sometimes, it's preferable to let go of the property in bankruptcy, and sometimes it's better to keep it. Every situation is unique, so it's essential to consult with a licensed insolvency trustee from Beaudin Groupe Conseil to determine your options and the consequences of bankruptcy on your property.


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