March 28th, 2010 by Questions
Because of a $250,000 loss related to Nortel, my husband and I are on the verge of bankruptcy. There are currently three court judgements against me alone since I own our home solely. The Licensed Insolvency Trustee I have been in contact with says all three of these judgement creditors go back to ground zero and are treated the same as my other creditors who have not taken the steps to achieve judgements. My lawyer says they get preferential treatment with respect to the forced sale of my house and their debts get satisfied as much as possible from the proceeds. A secured second mortgagee will be in a position soon to initiate a power of sale. Which is correct?
satisfied as much as possible from the proceeds. A secured second mortgagee will be in a position soon to initiate a power of sale. Which is correct?
Also how often does an unsecured creditor apply to petition a debtor into bankruptcy? I understand that it`s not a common practice but it can be done. Also if this were to happen can I go to the trustee I`ve already been in contact with to file for bankruptcy then or does the action of an unsecured creditor with a judgement against me preclude this.
Any help would be greatly appreciated.
Posted from: Ontario