Both my parents are making payments under a proposal. However my mom will soon be losing her income and is looking at doing the bankruptcy process for herself only. How does this affect my dad ... should he declare bankruptcy or keep up his share of the proposal? If they have over 40,000 in equity in the house do they have to sell it? If they don't sell it how do the creditors get the amount over the 40,000 (let's say its 16,000 over)? Thanks

I'm unable to comment on this situation without knowing all of the terms of the proposals and other pertinent information. I'd suggest you talk to your parent's Trustee directly.

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