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OK, I'm not Canadian, but I have gone through bankruptcy, and i can make some sense of things.

Start here:  http://www.duhaime.org/Backruptcy/default.aspx

Links that should help, didn't find any Ontario-specific though.  One from BC that gave exemption amounts for home equity--in the range of $`9k-12k.  Which is, frankly, ridiculous, I think.  However, I have no idea if y'all have a "homestead exemption" type thing that could add to or pre-empt this.  I know that here in Montana a homestead exemption is, I think, $55,000...could be more.

Basically that means if you file, that much value in your home is safe from creditors.  Now {DISCLAIMER: I reccommend a lawyer's advice before making any firm decisions} generally, between that and the mortgager's interest, you are unlikely to lose your home--it comes down to a mortgage holder having A: yhe secure debt and B: if you affirm that you will keep paying the mortgage, well, better a bird in the hand than maybe none in the bush.

This is, of course, subject to the discretion of the court (see, i didn'y have to worry, cuz the total amount of my mortgage was less than the exemption).  I'm not entirely sure, but IF the unsecured creditors wanted to tap that equity and IF the bank thought you weren't going to be able to pay THEN they MAY take your place.  highly unlikely though.

And I'm unsure of "renewing" your mortgage?  If talking about refinancing, well, here in the States at least there are plenty of companies willing to do that.

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Thanks for your reply.  Oddly I have found conflicting info regarding Ontario.  One site told me there was NO home equity exemption, inferring I would have to sell, another site implied the opposite.  I don't have alot of equity considering I only purchased a year and a few months ago.

My mortgage is a 5 year term, up for renewal in 4 years.  My concern is in 4 years if I had declared bancruptcy, would I be declined for my mortgage renewal  (as in carry on with the same bank)?  If I had to actually refinance as a person who has declared bancruptcy, I think it might be difficult in Canada.

I did find a good site bankruptcycanada.com, from which I found some trustees I can get a free consultation with.  I'm going to at least go for a consultation and see what they have to say.


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