First of all, a secured creditor such as your mortgage holder is not affected by a bankruptcy. They have their rights under the mortgage document you signed and you have to deal with them separately.

Second, in Alberta you are allowed equity in your personal residence of $40,000. So, as long as the lender is happy and the equity is less than $40,000 you can keep your home. If equity is over, then other arrangements can be made, but very rarely does someone have to sell their home.

Lastly, Chapter 7 & 13 are US terms. In Canada, you may be looking at either bankruptcy or a proposal to your creditors.

This is a fairly complicated area, so if you have any questions, please call me at 298-1575.

Shane Brenneis