Okay, I know it's a subject we don't like to discuss. But with job losses mounting in certain parts of Ontario, it is clear that many will be considering bankruptcy as a solution to their problems.

The first consideration is whether or not you lose your home. And although people will give you differing advice on this, it is the "intent" of the law not to kick you out of your home. Most trustees will work out an arrangement with the bank (or other mortgage holder) so that you pay back equity in the home. After all, in most cases, paying rent is more expensive than paying a re-negotiated mortgage, so it's in everyone's interest to keep you at home.

You will lose leased cars (due to no outright ownership) but can negotiate to keep a car you own (even with a loan balance). You can keep up to $5600 worth of clothing but will lose any items of any value that aren't required to live comfortably in your home. Who decides how comfortable you'll be? The trustee, but you can negotiate to some degree. by-the-way, if you've had money in RRSPs for over a year, you get to keep that. And if you were smart enough to put the home in your spouse's name, the bankruptcy usually doesn't affect them. But you can't make that change at the last minute either.

If you make a good wage but not enough to pay debts, you'll pay more for the trustee to steer you through bankruptcy. If you're out of work and there's no income coming in, it'll still cost around $1,400 but you don't have to pay it all at once.

They tell you that you can get credit back after 6 years. I've heard stories of people getting credit cards again within a year. And I've heard other stories of people still being rejected after 7 years. If, for any reason, you get into trouble a second time, you not supposed get credit back for 14 years. I've heard that people rack up incredible debts on credit cards just before going bankrupt and then having it all wiped out. I've also heard of people having to pay 30 cents on the dollar no matter what the amount. Which one is more accurate? I would count on the worst case scenario. People--even those not embarrassed enough to keep it to themselves--will brag about what they got away with. People tend to embellish embarrassing moments to make things sound like they were "smart". in actual fact, bankruptcy is very demeaning and has the potential to affect the way you live for several years to come. If you're a survivor, you'll get through it and be better off than you were when financial stress was a daily occurrence.

For many, the positive relief far outweighs the negative results. But the important thing is not to listen to anyone other than a trustee, in my opinion. They can pretty much predict what will happen during the course of your bankruptcy (which lasts for a year). But they can't tell you what happens after that.

Best thing to remember? There are few black and white regulations on this, contrary to popular belief. Oh, the laws are straightforward enough. It's the interpretation by consultants, trustees, creditors, and banks that make the whole thing confusing and, sometimes, bias.

Get the facts before you make a move. And get more than one professional's advice.

Here's a link with a little more info and further links on the subject:

http://business.theglobeandmail.com/servlet/story/RTGAM.20090204.wbankrupt0204/BNStory/SpecialEvents2/home?cid=al_gam_mostview

Robert J. Morrow is editor of www.HamiltonHomeReview.com, an online real estate magazine serving Greater Hamilton, Ontario. Click here for a FREE SUBSCRIPTION sent to your email monthly. Click here to receive new Hamilton area listings in your email daily.