2024-09-25
What happens if I don’t fulfill my duties during a Bankruptcy?
Bankruptcy
If you’re going through a personal Bankruptcy, one of your main goals is to obtain your discharge — that is, to have your debts cleared so you can start fresh.
I Am in Financial Trouble and am Worried About Losing My Home
Based on your question, I am assuming that you have a mortgage on your home. In Alberta, if you are current or catch up on your mortgage, the lender can not foreclose on your home or stops the foreclosure. If you are behind on the mortgage, it is only the lender who can vary any terms. Legal counsel may be able to help you stall the foreclosure while you work on a plan to catch up or find new financing. Even a bankruptcy will not stop a foreclosure. A lender with a mortgage is called a secured creditor. Secured creditors have the right to realize on their security, even in a bankruptcy, if you are in default on the payments or any other terms of the mortgage. What you need to be careful of it whether or not this is an insured mortgage. (EG: CMHC, Genworth, AIG) If something ever does happen to the home, the lender will get paid from the insurer. The insurer can they pursue you for the shortfall. If it is not an insured mortgage, the lender can not sue you for the shortfall. They can only take the property. Another question would be....is it my other debt that is causing me troubles? If I could deal with that debt, would it free up enough money to stay current with my mortgage? Before the mortgage gets into trouble, or too far into trouble, I would recommend that you talk with one of our counsellors or Trustees about the specifics of your situation. Let's see if there are any options out there that would help you before the mortgage goes into arrears.
Donna Carson
CIRP, LIT, CPA
Senior Vice President
Servicing: Calgary (Downtown), Red Deer, Drumheller, Calgary (NE), Airdrie
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2024-06-10
Life after Bankruptcy
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The fresh start you obtain after filing a Consumer Proposal or Bankruptcy offers many new paths for managing your day-to-day needs and planning for your future.
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How Often Can You File For Bankruptcy (MNP 3 Minute Debt Break)
Bankruptcy
Canadians are facing a cost-of-living crisis. With rampant inflation, many have taken on more debt just to make ends meet. With interest rates still high, some households might be considering declaring Bankruptcy for the first, second, or even a third time.
If this sounds like you, don’t worry — many people are in the same situation, and it isn’t anything to be ashamed of. Filing for Bankruptcy or entering a Consumer Proposal might be the solution you need to relieve financial stress and get a fresh start.
