I own a home that I live in and use as a rental property. The home has been accessed at 260,000, and I owe 190,000 in morgage. That leave about 70,000 in equity. I've not had problems making mortgage payments and house expenses, because the revenue from the house meets the expenses. If I were to declare bankruptcy would I be forced to sell the home? Is there other ways to pay creditors the 30,000 of equity without selling? I run my business from my home and selling the home would severely hamper my ablility to earn a living.

A proposal may be a good option for you. The proposal would allow you to settle the debt by offering creditors the non-exempt equity in your home, which you would pay over an extended period of time. If you did have to file for bankruptcy the equity would likely be recovered the same way. I'd suggest you meet with a Trustee to review your options and how they work.

Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca