Can you keep your house with a consumer proposal?

_{consumer proposal, mortgage payments, Ontario}

In Canada, if you’re dealing with debt but want to keep your home, consider a consumer proposal. It’s a win-win—an agreement with creditors while protecting your assets, including your home. Just keep up with mortgage payments and check your home’s equity to stay within allowed limits.

_{Protect your home with a consumer proposal solution.}

Question

Can you keep your house with a consumer proposal? I’m trying to figure out if there’s a way to protect my home when I’m in a consumer proposal. My house means a lot to me, so any advice on keeping it safe would be awesome.

From: Anonymous Question, Ontario (ON)

Debt Insiders Answer

In Canada, if you’re juggling financial woes but want to hold onto your house, a consumer proposal might just be your lifesaver. It lets you strike a deal with creditors and safeguard your treasured belongings, including your home sweet home. Just keep up with those mortgage payments during the proposal period, and make sure the equity in your haven doesn’t surpass what’s allowed in your province. Chatting openly with your licensed insolvency trustee is key—stay on top of your finances to keep things smooth sailing.

From: Insider Scott

Office of the Superintendent of Bankruptcy (OSB) Answer

Yes, you can keep your house when you file a consumer proposal in Canada, provided you continue to make your mortgage payments. The consumer proposal process, as outlined in the Bankruptcy and Insolvency Act, allows for the protection of your assets, including your home, as long as you are up-to-date with your secured debts.

In terms of specific regulations, section 66.34 of the Bankruptcy and Insolvency Act states that your property can be exempt from seizure if you agree to a repayment plan that the creditors accept. Additionally, if your equity in the home is below the exemption limit set by the provincial laws, you can retain ownership without the risk of losing your house.

It’s crucial to communicate with your Licensed Insolvency Trustee to ensure your home is protected and to understand your obligations regarding mortgage payments during this time.

From: This answer is provided by scanning the OSB Bankruptcy & Insolvency Act and related directives

Related Questions

Here are the top 5 most frequently asked questions related to keeping your house with a consumer proposal, based on common concerns and online search trends:

1. Can I keep my house with a consumer proposal?

• Yes, you can keep your house as long as the debt is secured and you continue to make the mortgage payments.

2. Are mortgages included in a consumer proposal?

• No, mortgages are not included in a consumer proposal because they are secured debts.

3. What happens to my secured debts during a consumer proposal?

• Secured debts, such as mortgages and car loans, are excluded from the consumer proposal, but you must continue to make payments on these debts.

4. Can I surrender my house as part of a consumer proposal?

• Yes, you can surrender your house and include the amount owed in the consumer proposal, but this is typically done if the house is more of a financial burden than an asset.

5. Will a consumer proposal affect my ability to keep my other assets?

• No, a consumer proposal does not require you to sell any of your assets to satisfy your creditors, providing asset protection[1][3][5].

If you have a question about debt see our debt questions or ask your own debt related question.

References

_{Table of article references}