Answer: If there is no equity in your house, then selling it prior to bankruptcy is not a problem.  In fact, it’s probably a wise move, because if the house sells for less than you expect and there’s a shortfall, that shortfall could then be included in your bankruptcy.

Be sure to keep all documents relating to the sale.  It may also be wise to have the house appraised before you sell it, so that you can prove there was no equity.

If not then is it possible to put the house up for sale and what ever is the profit, if any can go to my bankruptcy . Since it was not included in the bankruptcy at all i am not sure if i will be allowed to sell.

Answer: I’ll start my answer by clarifying your question.

A mortgage is a secured debt, and bankruptcy includes unsecured debts, so at the start of your bankruptcy you chose to continue making payments on your mortgage, so you could keep your house.  It’s not that your house wasn’t included in your bankruptcy; it’s simply that you chose to continue making your mortgage payments.

If you were to stop making your mortgage payments now, the bank would eventually foreclose on your house and sell it.  In that case you would be responsible for the resulting shortfall, if any, since the shortfall is a debt that came into being after you filed for bankruptcy.

Alternatively, you could sell the house yourself.  If you sell the house for more than is owing on the mortgage, including selling costs, the resulting equity would go to your trustee for distribution to your creditors.  If there is a shortfall, you would be responsible for the shortfall.

Without knowing the exact numbers in your case, we would strongly recommend that you meet with your trustee to review the numbers, and to fully evaluate your options.

Answer: If your niece has co-signed a debt for another person, and that person declares bankruptcy, then your niece is responsible for the debt.

As to whether or not she will lose her house, that is a more difficult question.   The answer will depend on whether or not she files bankruptcy or files a consumer proposal, and whether or not there is any equity in the house.  More information can be found in this article on what happens to my house if I file for bankruptcy?

For advice on debt and bankruptcy matters, she should talk to a licensed bankruptcy trustee.

Answer: Yes, you can file a consumer proposal or a bankruptcy in Ontario, and continue to make the payments on your mortgage and your car, provided those payments are up to date when you file.

Whether or not you should continue to make the payments is up to you.  If your house is worth significantly less than what is owing on the mortgage, it may be prudent to surrender the house and include it in your proposal.  That is a decision you will make in consultation with your consumer proposal administrator.

Answer: It is very unusual for creditors to attend a creditor’s meeting.  Most creditors are big banks and credit card companies, and they don’t have the resources to be sending staff to creditor’s meetings.  Even if they did show up, they would presumably request that you pay the $15,000, or surrender the house.

Your question is not clear: did you file bankruptcy, or did you file a consumer proposal?  If you filed a consumer proposal, it is possible for the creditors to negotiate a settlement with you.  If you have $15,000 in equity in your house it is unlikely that they would agree to $4,000.  However, they may agree to an initial payment of $4,000, and then further payments of $200 per month for 60 months; that would be total payments of $16,000, which is more than they would get in a bankruptcy, so that may be acceptable to them.

We strongly recommend that you discuss this with your trustee, since it is your trustee’s job to fully inform you of all possible outcomes, so that you understand the different options.

Answer: You will not be charged for disposal.  If there is not much equity, it’s likely that the bank will foreclose on the house and sell it.  They would be responsible for disposing of any items on the premises.  If there is equity and the trustee is selling it, the trustee, working with the real estate agent, would be responsible for making the property ready for sale.

If there are any items of value, you could hold a garage sale prior to moving.

Answer: Your wife’s house is not at risk if you declare bankruptcy in Ontario.  Since she has always owned the house, and she has always paid for it, and since you are not separated from her, it’s her house.

More information can be found in this article on what happens to a house in bankruptcy, or consult a lawyer or a bankruptcy trustee to review your situation to determine if there are any other factors that would influence your decision to file bankruptcy.

Answer: If you file bankruptcy in Ontario, you only lose contributions you have made to your RRSP in the last twelve months.  If you have not contributed in the last twelve months, you will not lose your RRSP.

As for your cars, for the car with a loan, you can either continuing paying the loan and keep the car, or give it back to the lender.  You are permitted to keep one car worth $5,650 or less, so you could keep your other car if you filed bankruptcy in Ontario.

Answer: If you file bankruptcy in Ontario, you are required to either surrender your house to the trustee, or pay to the trustee the equity in your house.  Equity is the value of the house (the difference between the value of the house, and the amount owing on the mortgage and other charges).  If there is no equity, you could keep your house (provided you keep the mortgage in good standing).  In your brother’s case, if the house is owned jointly by him, his sister, and his brother, he would only be required to pay his share of the equity (presumably one third).

He should get an appraisal on the house, and confirm the balance owing on the mortgage, and then meet with a trustee to discuss his options.

For the car, if there are no loans against it, you can keep a car worth up to $5,650 if you go bankrupt.  Since his car is old, it is probably not worth more than that amount, although again he can have it appraised to be sure.

More information can be found in this article on what happens to your house if you file bankruptcy in Ontario, and what happens to my car if I file bankruptcy in Ontario.

For a review of his exact situation, he should consult an Ontario bankruptcy trustee for a no charge initial consultation.

Answer: If he stops making the mortgage payments, eventually the bank will take the house. They will sell it, and if there is a shortfall, they will pursue both him and you, if your name is on the mortgage. The bank doesn’t care about the fact that he agreed to make the mortgage payments; the separation agreement was between you and him, not you and the bank, so they are not bound by it. If he goes bankrupt, they only person they can pursue is you.

If he sells the house and gets enough money to pay off the bank, that’s great, there is nothing for them to pursue you for.

Filing bankruptcy alone will not make the bank take the house. Many people file bankruptcy and keep their house, provided they can continue to make the mortgage payments, and pay any equity into their bankruptcy estate for the benefit of their creditors. More information can be found on this article about What Happens to My House if I Declare Bankruptcy?