Will I lose my property if I file for bankruptcy or a consumer proposal?

This is probably in the top five questions that we have been asked over the years. The way we have answered this best is to say that the creditors do not want to take your property – they want to get paid the money that they are owed- and if they are not going to get paid the money they are owed, then they want to know they are not missing out on something that they could otherwise seize and get money for, such as your property.

To put this another way, if you have real property, your unsecured creditors would expect to get paid the equity in the property.  Equity in your property is roughly the amount of money that you would receive in a sale of your property after outstanding mortgages are paid.

If you are going to file for bankruptcy or a proposal and you do not want to lose your property, we will show you how this is done by ensuring that your creditors are satisfied that they will get paid for the equity in your property, without you having to seize your property for force you to sell it.

If losing your property is one of your biggest concerns, click here for an appointment or call now for a free consultation to discuss this further.

Will I lose my house and my car if I go bankrupt?

Real property is usually mortgaged which means that you must continue to make the mortgage payments to keep your home- an arrangement between you and the lender-if there is equity, this must be addressed- this is a reason to call and meet with a professional so that you are not worried about losing what is often the most important thing in your life. Cars operate on the same principal, if they are financed or leased.

Will I go to jail if I don’t pay my debts and file bankruptcy? 

Not unless you committed fraud or lied or ignored  a court order to appear in court. The bankruptcy process is designed to allow you to face your creditors and be protected from lawsuits, so that you can get out of your debts subject to reasonable conditions- jail, is almost never one of these conditions.

Will my bankruptcy (or consumer proposal) be on my credit rating forever, assuming you get discharged (or finish paying the proposed amount, in the case of a consumer proposal)?

No. Credit reporting rules have limitations on all these time periods which we can explain in detail when you reach out to us for a consultation.  These rules are governed by provincial law to protect your reputation as a borrower who can eventually be rehabilitated. 

Can I continue to collect a paycheque when I am bankrupt? 

Yes, in fact, bankruptcy will protect your paycheque from being garnished- but you will of course have to disclose your income.

Can I have a bank account?

Yes, in fact, bankruptcy ensures your bank account for your regular income and expenses is protected.