My partner and I are in serious financial difficulty and are considering either bankruptcy or a consumer proposal. We have approximately $200,000 in consumer debt (car loans, credit cards, lines of credit). We can barely make the minimum payments, but every time an unexpected expense arises, we have to resort to our credit cards or lines of credit, which has kept us going in circles for two years, and the balances on most of our debts (except for closed loans) aren't decreasing. Our main creditor (40% of our debt) is the bank where we have our mortgage and our main bank accounts. I'm therefore afraid they will oppose our proposal and tip the scales against us. If the proposal is rejected, we will likely have to consider bankruptcy. I don't mind losing all my possessions if necessary, but I can't afford to lose the house. We have two dogs, and without a house, we'll have to give them up, which is out of the question. My question is: Can we lose our house if we go bankrupt? Our house is worth $220,000 on the market. Our mortgage balance is $179,500.