Question: I am about to go bankrupt in Ontario. My question is, can my home be repossessed? I have about only 5% equity in it and child who is under 18 lives with me there and it is their primary residence.
Answer: If you go bankrupt, the trustee is required to take your assets and turn them in to cash. In your case, if there is only 5% equity in your house, it would not be possible for the trustee to sell your home and turn it into cash, because the trustee would be required to pay real estate commissions on the sale (probably 5%), plus legal fees and a penalty to break the mortgage, so in your case you would probably not lose your home.
We suggest you get a comparative market value assessment from a real estate agent, and a print out of the amount owing on the mortgage, and then consult an Ontario bankruptcy trustee for more information.