Do we lose both houses in a bankruptcy? Our son was supposed to be paying one of the mortgages as his rent but has not paid in over a year. We cannot afford to keep paying for both.
Do we lose both houses if we declare bankruptcy?
You are entitled to keep equity in your principal residence, as set by your province:
If the exemption is not large enough for you to keep your principal residence, filing a consumer proposal may allow you to keep this home.
Since you cannot afford to keep the second home, a bankruptcy will allow you to give up the home and the mortgage debt will be erased.
You can find more information at the following link:
Earl Sands, Licensed Insolvency Trustee