Question: I am currently in financial trouble after loosing my job over a year ageo. I am currently working but I am drowning in debt and need a fresh start. I have two homes both in my name where the principal residence is in trust at 50% for my cousin. The second home is my cousins but morgaged to me. Since I was unemployed and the debts are stressing I feel I have no option but to file for bankruptcy. My question is will I have to surrender the second home just because its in my name neither home have equity.
Answer: Yes, you can keep your home if you file bankruptcy in Ontario. If there is no equity, the trustee won’t take your house or houses.
However, if you are unemployed and are worried about making the payments on the house, it may be more logical to simply surrender the houses back to the mortgage company, and then any resulting shortfall would be included in your bankruptcy.
There is no correct answer in your situation, so you should discuss your decision in detail with an Ontario bankruptcy trustee before you make your final decision.