Question: Hi I have just about $52,000. in dept including 2 credit cards which I pay the min. I have a Line of credit of $20K and I have just been served from the Superior Courts to pay $22K.I am unemployed, no income, own a home, a car and having a difficult time paying my bills. I owe just under $6,000 on my car that is in my name and someone else. I have a house my husband pays the mortgage and land tax but I dear not mention bankruptcy against his house because that is all we have. We do have a 17 yr going to school. Can I declare bankruptcy without loosing my house and involving my husband? I am seeking deligently to find a job to offset the high dept I am in.
Answer: Whether or not you would lose your house if you declare bankruptcy in Ontario depends on a number of factors, including the value of the house, and the amount owing on your mortgage. More information is available in this article on What Happens to My House If I File Bankruptcy in Ontario?
Another option would be to file a consumer proposal, which in virtually all cases allows you to keep your house. However, if you are not working, a consumer proposal may not be an option, since you don’t have the income to make the payments.
We suggest that you arrange a no charge initial consultation with an Ontario bankruptcy trustee to review your options, and then decide which option makes the most sense for you and your family.