Can you lose your house if you file a consumer proposal?

by Brett

I have a house with some equity. I owe $85,000 on my credit cards, line of credit and other small loans. I have been trying to keep up with the minimum payments but I can't anymore so everyone has closed off my credit now. Everything is in collections and collection agencies are calling me day and night at home and at work. They are really harassing me and I can't stop them. They are telling me that unless I pay everything right now their lawyers will make sure that I lose my house.

I am pretty sure that my credit is pretty bad because the bank won't give me any money.

What should I do. I was thinking of a consumer proposal but I'm afraid of losing my house. Do I have any options?

I will wait for your answer. Thank you.

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Jan 21, 2015
Consumer proposal - What happens to my house?
by: Marie Copeland, Mortgage Broker Hamilton, Burlington and throughout Ontario.

Brett, many people experience setback in their lives and get crippled by too much debt - you are not alone.

You deserve another chance and we help good people get a fresh start and rebuild their lives, even if they have bad credit.

In the event of a Consumer Proposal, I often work hand in hand with Trustees to take steps to protect your home and still meet all your legal obligations.

I would urge you not to wait but contact me so that I have more information needed to put together a strategy to help you.

If you continue as is, you have very little chance, if any, to repay this debt. Your credit will suffer even more damage and your quality of life could become more desperate.

Although I can't give you a strategy over the internet, I can give you some input how we approach situations such as yours.

The first step would be to assess your information to determine what is in your best interest.

I take into consideration your credit and income as well as the amount of equity in your home available to you given your circumstances. This lets me assess whether or not you have the ability to repay this debt and repair your credit quickly.

Often we can eliminate credit card debts with debt consolidation help using the equity in your home. Even when the banks won't give you a mortgage, we have bad credit equity mortgages and private mortgage lenders for bad credit in Hamilton and throughout Ontario. In your case, interest only second mortgage may be a good fit.

In some cases Consumer Proposal is your best and only option. If so, I work with Trustees to develop a good plan for you.

I don't know how much equity you have in your home that can be cashed out given you say that your income is low and you have damaged credit.

If the home equity mortgage you qualify for is significantly less than the debt you owe, then a Consumer Proposal could be in the cards for you.

In that case I help you cash out as much of the equity in your home that you qualify for - this will give you money for a bulk settlement for your creditors. On closing this money after fees and closing costs stays in your lawyer's trust account until your Trustee needs it for your Consumer Proposal.

When the Trustees know how much money is available for the creditors they work their magic to settle your unsecured debt as low as possible, without putting your house at risk.

They work with the creditors to accept a lower payment than you owe. These professionals may also have other useful tools to work with.

Once you are Discharged from your Consumer Proposal, it is important that you get a secured credit card as soon as possible to re-establish your credit. You will find a secured credit card application on this website - here is the link:

Your situation can only get worse so don't put off dealing with these debts - contact me so that we can stop this madness and harassing creditor calls.

The process is simple, non confrontational and discreet.

Marie Copeland FSU, Hamilton mortgage broker also arranging Burlington mortgages and throughout Ontario - Toronto to Niagara areas and beyond.

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