Bankrupt and no relief yet
April 15th, 2012 by Questions
I filed for Bankruptcy because I owned a restaurant which was secured by my house.
I Have both properties up forsale but the restaurant mortgage company is still trying to foreclose on both properties. My house mortgage up to date and I pay restaurant mortgage 90 % of their mortgage payment but they are still proceeding. I may end up still losing my house right they got Judgement and will proceed for Writ of Procession… so I could very well lose my house even though I am paying. Not fair!!
Posted from: Ontario
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April 15, 2012 at 6:34 am, A licensed trustee said:
This si something you should have discussed in detail with your trustee BEFORE you filed.
If when you bought the restaurant you agreed to pledge your house as security for the loan too, then the mortgage company is well within their rights to seize and sell both properties if you are not making all of the required payments.
You need to go back and speak to your trustee some more about this – if you have made mortgage payments isnce you filed for bankruptcy then you re-affirmed the debt (you excluded the mortgages and the properties from the bankruptcy). Now if the mortgage company sells the properties at a loss, you may have to pay them the loss.
For everyone else reading this post: It is critically important when you file for bankruptcy to decide BEFORE you file whether or not you will keep paying your secured debts – mortgages and car loans. You can’t change your mind two or three months into the bankruptcy or you may get stuck paying ofr any losses.