Home Problems
My wife and I have recently purchased a home that has some serious problems we can not afford to fix. We also have quite a bit of unsecured debts. We can make all of our minimum payments, but there is no way we can afford what has to be done to the home. We would have surplus income of 1800 a month but even 21 months of payments would be more affordable to us than the repairs that have to be done. If we were to give the home back to the bank would we still qualify for bankrupcy, and also would the bankruptcy cover any shortfall the bank or chmc would have on holding cost and the sale of the home.
Thanks
Posted from: Ontario
The test to qualify for bankruptcy is pretty easy. You must resided in Canada or have resided in Canada within the last 12 months or own property in Canada. As well you must owe greater than $1000 and be unable to pay your debts as they become due.
In terms of the shortfall either the bank or CMHC will have this will be cleared when you file the bankruptcy as will any of the holding costs and costs relating to the sale of the property.
The best thing to do is to simply sit down with a local trustee prior to the foreclosure so that you can make sure you do everything properlyl.