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.
2008-07-22
Assuming that you've exhausted the option of getting a higher purchase price, can't wait any longer for a higher price, and don't have the funds to cover the shortfall:
I would begin by talking to your Mortgage Company/Bank. At the end of the day, if the house sale doesn't close and you begin to default on the payments, it's the Bank who will be dealing with the house (possibly even a foreclosure). If they have sufficient proof that the offer you are considering is the true fair market value, they may allow the sale to close, even with a shortfall.
If their mortgage is CMHC insured, insist that your Bank talk to CMHC. If there is an ultimate shortfall on the sale, it's CMHC who will be paying out the Bank and then looking to you to reimburse them. So CMHC may be motivated to allow you to close the sale. It will save them the costs of a foreclosure.
You could also talk to the realtor about their commission, although they have a contract with you and are entitled to the commission. But if the sale falls through, the realtor will lose the deal as well.
If you'd like to talk to someone about the specifics of your situation, don't hesitate to contact me or an MNP Trustee in your area.
2025-09-04
Bankruptcy
The intention of Canadian bankruptcy law is to provide honest and overextended debtors the opportunity for a financial fresh start.
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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.
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Lifestyle Debt
Have fun on a budget with our guide to affordable activities in Atlantic Canada.