You must not lose your property in the event that you get bankrupt. The bank cannot foreclose or repossess your house if you continue making your mortgage payments.
For instance: if you default from the repayments for the home loan then your bank can foreclose on the house.
Then you will need to pay that equity to your Trustee in Bankruptcy for the benefit of your unsecured creditors if there is equity (is your home worth more than the mortgage debt on your home.
In certain provinces, there clearly was security for many associated with equity in your major residence. Nevertheless, there’s no security for equity in your major residence in the event that you are now living in brand brand New Brunswick, Nova Scotia or Prince Edward Island.
The first $40,000 of equity in your home is protected from unsecured creditors for example: In Alberta.
You should contact a Trustee in Bankruptcy (Licensed Insolvency Trustee) to review your options if you are having difficulty paying your debts.