2009-02-02
The first question I would have is whether or not the bank can pursue you for this shortfall in the first place. If the mortgage was an insured mortgage....the insurer (CMHC, Genworth) can pursue you for the shortfall. If the mortgage was not insured.....the bank (assuming this was a conventional mortgage) can not pursue you for the shortfall. Assuming that this was an insured mortgage, and you therefore have some exposure for the shortfall, the insurer has to sue you first and obtain judgment before they could garnishee your bank account. If you are thinking that bankruptcy or a proposal may ultimately be an option for you, anything you do with your assets in the period prior to bankruptcy could be reviewed. If you are just moving a "bit" of money in order to live on, there would usually be no problem. Although there is no specific exemption for cash on hand at the date of bankruptcy, reasonable living expenses must be covered. But if you are talking about moving "substantial" funds, you may want to seek further advice before you move them. You may wish to contact one of our Trustees in your area to discuss the specifics of your mortgage and how much savings you are talking about. Donna Carson, CGA, CIRP, Trustee Calgary, Airdrie, Drumheller regions 1.877.500.0792 [email protected]
2025-11-17
November 16-22, 2025 is National Addictions Awareness Week (NAAW) in Canada. Every year, organizations across the country observe this important week and do what they can to help those who may be struggling with addictions, while raising awareness and sharing information as to how family and friends can create support networks.
2025-11-13
Debt Solutions
Many may feel ashamed, embarrassed and completely overwhelmed about their debt. People experiencing debt-related stress often suffer from many associated health issues, such as sleepless nights, headaches, tension and more. And feeling out of control when it comes to managing their debt payments often prevents people from taking control of their financial situation. Not all debt results from overspending, living beyond one’s means, frivolous behavior or money mismanagement. To answer your questions about the stigma of debt, and to learn about the options available to you, tune into our Stigma of Debt VLOG series below with MNP's Licensed Insolvency Trustees.
2025-11-12
Bankruptcy Consumer Proposal
Summer fun doesn’t have to come with a hefty price tag.
