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]
2025-06-19
With the school year beginning and thousands of Canadian students beginning a new semester of post-secondary studies, all those hard-earned dollars from summer gigs are now being applied to tuition, books, transportation, housing, and supplies.
2025-06-18
The cost of daily goods has been rising over the past few years — increasing the price of food, gas, clothing, and many other essential items that Canadians need in their day-to-day lives.
2025-06-16
Bankruptcy Alternatives to Bankruptcy
Let’s review what a Consumer Proposal is, as well as the pros and cons of filing a Proposal, to help you determine if it’s the right solution for your unique situation.
