2025-09-04
Will Bankruptcy Erase All Of My Debt?
Bankruptcy
The intention of Canadian bankruptcy law is to provide honest and overextended debtors the opportunity for a financial fresh start.
2008-04-21
You could try to negotiate this with the lender, but chances of success are very low. This type of negotiation after filing a bankruptcy is often very successful with things like a loan against household goods - the lender knows that because of the bankruptcy, the most they will ever recover is the value of the goods. However, it’s very difficult get a mortgage lender to reduce the debt on a condo or house, even after a bankruptcy has occurred. Reducing the mortgage amount doesn't really give the lender anything of value that they don't already have. So, most lenders will always prefer to take their chances that the value of the condo will increase over time and they won't agree to reduce the amount you owe them. In some very limited situations, it may be possible to reduce the mortgage amount by filing aProposal to Creditors. You would need to discuss your particular situation with a trustee to see if this would work for you. However, if you filed a bankruptcy or proposal and chose to move out of your condo, you would not have to pay anything further on the mortgage. The mortgage lender would foreclose on the condo and sell it, but could not ask you to pay any shortfall. Feel free to get in touch with me if you have any further questions. Judy Scott - Port Moody - Vancouver - Abbotsford - 604.949.2100. [email protected] Back
2025-09-04
Bankruptcy
The intention of Canadian bankruptcy law is to provide honest and overextended debtors the opportunity for a financial fresh start.
2025-09-02
Lifestyle Debt Debt Solutions
You already know the many benefits of skilled money management. The fact you’re reading this blog post says at least that much. Your challenge, like for most households, is how to navigate the seemingly infinite demands on your frustratingly finite income.
2025-09-02
Lifestyle Debt
Have fun on a budget with our guide to affordable activities in Atlantic Canada.