I owe thousands of dollars on my credit cards and own a house. Will I lose my home in a Consumer Proposal?

by Roger

I have been in a car accident 3 years ago and could not work. I had to use my credit cards to live on and now I owe close to $70,000 on my credit cards. I'm now back to work full time but I can't keep up with my payments.

The bill collectors are calling me constantly, even late at night. They are also calling my work causing me problems and I'm afraid of losing my job.

I now have depression because of all this and my doctor has put me on medication.

I went to my bank to get a new mortgage to consolidate this debt, but they turned me down because my credit is bad.

I have a bit of equity in my house but I'm afraid that if I go to a Bankruptcy Trustee, I will lose my home.

What should I do?

Comments for I owe thousands of dollars on my credit cards and own a house. Will I lose my home in a Consumer Proposal?

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Oct 29, 2015
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Sep 30, 2015
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Oct 30, 2013
by: Marie Copeland, Mortgage Broker

Roger, thank you for your question.

Please Contact me or Apply Onlineso that I can help you. I will get back to you within 24 hours to discuss your options. It's easy and confidential.

Each situation is unique and needs to be assessed individually in a private and personal consultation with you.

I need more information to develop a right strategy for you -- we'll decide together if your best option is debt consolidation, equity take out to raise funds for a lump proposal to settle creditors or, if you should be re-directed to consumer consultants directly.

But in general, I look at how much equity you have in your home, your current credit quality, employment and personal circumstances. We need to establish whether or not you have the ability to repay this debt through debt consolidation or a consumer proposal is your only option.

Assuming that a consumer proposal is your best option and given that you've confirmed that you have equity in your home and that your credit is already damaged, we may be able to use private lenders to take some equity out of your home for a lump sum settlement of your debts.

Once we have raised funds from the equity take-out, I will let the consumer proposal consultants know how much money they have to work with.

This money stays in the lawyer's Trust Account until it is needed to settle your debts.

I will then assess your new home value and provide this information to the consumer proposal consultants where your file will be forwarded.

Additionally, we'll provide them with a list of your unsecured creditors obtained from your credit report. This will ensure they are all included in your Consumer Proposal.

The consumer proposal consultants will then go to work to reduce your unsecured debt to a minimum, possibly as low as 30 cents on a dollar.

The outcome should be that you keep your home.

About 45 days from filing, when your Proposal is discharged, I will direct you back to this site to get your secured credit card application. You will need to get a secured credit card as soon as possible to re-establish your credit and get back on track.

This is a general process pending a personal assessment with you.

I hope this helps in making your decision.

Visit Consumer Proposal for more information.

Marie Copeland,FSU, Broker, Axcess Mortgage and Loans Financing.

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