People find themselves in financial difficulty for many reasons. Sometimes those who find themselves in debt or mortgage insolvency are there because of business failure, job loss, marital problems, illness, or generally poor spending habits. If you are in a situation where you are always paying your mortgage but are falling behind on credit cards and other bills, You may be worried that you may soon fall behind on your mortgage payments, causing you to worry that you may lose your house. However, there are options to keep your home even if you decide to file for bankruptcy. Some possible solutions include consumer proposals (where debts are less than $250,000), division I proposals for debts > $250,000, consumer bankruptcy, and assistance with equity loans and mortgage refinancing.
Possible Solution: File a Consumer Proposal
The most common way to keep your house is by filing a consumer proposal where debts are less than $250,000. Sometimes bankruptcy is not even necessary for people, as consumer proposals are a better solution. If you file a consumer proposal, a payout schedule for any home equity value would be included in a proposal to your creditors. You can spread out those payments over a longer period of time with a consumer proposal than you can with a bankruptcy option. For instance, if your creditors anticipate receiving an amount from the equity in your house, you can offer a proposal where you will pay a bit more over the course of 50 months. This will allow you to spread out the payments at smaller rates, making it easier for you to pay them. Given that you are offering them more than they would get in bankruptcy, they will often accept that proposal. In this case, this will benefit both sides, as you don’t have to lose your home and can afford to pay the rate each month.
Worrying about your home and family is common, especially if you are struggling with payments for other expenses. We understand that it can start getting hard to keep up with all your debt. So if you are not sure what your options are for mortgage insolvency, discuss them with a mortgage insolvency trustee like Kunjar Sharma & Associates Inc. (KSAI). At Kunjar Sharma & Associates, Inc. (KSAI), we can help you find the best solution for your situation and get you back to debt freedom. There are possible solutions, and the longer you wait, the greater the risk you may fall behind on your mortgage payment, putting your assets at risk. We can halt creditor actions, provide time for an organized sales process, and arrange for an assessment of value and equity in the home, and in many cases, you can keep your home even if you file for bankruptcy.
If you or someone you know is in a similar situation, we recommend discussing it with our team of professionals. What is important to know is that you can be debt-free in as little as 9 months! Book a free consultation today at https://kunjarsharma.com/mortgage/, and we can help review your options and get you back on track!
Kunjar Sharma & Associates Inc. (KSAI) is a Licensed Insolvency Trustee firm in Toronto with 40+ years of expertise. We understand that there may be many reasons for your financial problem and we want to help you get out of it. Our focus is to help individuals and businesses that are in need of extra assistance in restructuring their finances or require specific services from a Licensed Insolvency Trustee.
