If you are going to file a bankruptcy or consumer proposal with The Fryzuk Group, we will first want to determine how much you owe on your mortgage and any additional mortgages you may have. We will also need a value for your home and we ask that you obtain an appraisal or comparative market analysis on your home. With these two pieces of information we can determine how much equity you have in your home. Equity is the difference between what your home is worth and how much you owe on the mortgage. In Alberta, you are allowed to keep $40,000 of equity in your home as an exemption when filing bankruptcy.
As a general rule, if you are not behind on you mortgage payments, and you have enough cash flow each month to make the payments, the mortgage company is not permitted to cancel a mortgage just because you filed a consumer proposal or bankruptcy.
The creditors don’t generally want you to lose your home, they just want what equity they are entitled to over and above the exemption. We can assist with explaining if your home is in jeopardy, how much equity you have in your home, what filing a consumer proposal or bankruptcy will mean when your mortgage is up for renewal and even how to deal with foreclosures and liens against your property.