Do I have to give up my house in a bankruptcy?   

The short answer is no, you don’t. But depending on the value, mortgage balance and monthly carrying costs, now is the time to consider it.  

Is there equity in your home?

In a bankruptcy, the trustee has a duty to realize on any assets that have value.  If the value of your house is greater than the mortgage balance owing, you will have to make an offer to “settle” on the equity and pay the trustee to keep your home.  

If the value of your house is less than the mortgage balance owing, there is no equity and you can continue to pay your mortgages and property taxes and keep your home.  

Can you afford to maintain your home?

With rising interest rates and the cost of living, you may be struggling to make ends meet even without unsecured debt payments.  Make a detailed list of monthly income and all expenses to determine if you can afford to keep your home. Mortgage payments, property tax, condo fees, insurance, utilities, and repairs and maintenance costs can add up quickly to an unmanageable amount.  

Research the cost of a rental that accommodates your family needs for comparison purposes.  

Bankruptcy fresh start

Filing an assignment in bankruptcy is giving you a financial fresh start and now may be the time to make tough decisions.  Think of the basic “needs vs wants” analysis.  Do you need your home for specific family needs (location, size, accessibility) or do you want your home?  If your mortgage significantly exceeds the value of your house, now may be the time to walk away and have the mortgage shortfall included in your bankruptcy.  

At a free consultation we will review your personal situation in detail so you can make an educated decision on retaining or giving up your house.  Reach out to me today for your fresh start.