If A Person Goes Bankrupt Do They Have First Option To Buy Back There House

2010-04-13   minute read

Hello, If there is no equity in your house (i.e. it is fully secured by a mortgage), you would just continue on making the payments to the financial institution through which you obtained the mortgage. This assumes that you are not behind in the payments. Alternatively, if there was a small amount of equity in the house, you may have the option of buying back the equity in a monthly payment. In some cases, the amount of equity is substantial and a monthly payment is not realistic. In this situation, it is more likely that the Trustee would sell the home to realize on the equity for the benefit of the unsecured creditors. If the house is being sold, it should be exposed to the public market to ensure that the best possible price is obtained. There are many variables that can affect this type of situation, including the province in which you reside. It is recommended that you contact a Trustee in your area to explore this issue further. Brad Milne, CIRP Trustee in Bankruptcy Brandon, Manitoba

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