Bankruptcy after illness

August 7th, 2010 by Questions

Im currently on long term disability after illness and cannot return to work. my spouse works part time- we are debating bankruptcy. Here are our concerns:
Mtg is insured through cmhc-would turn over keys to home as well-does cmhc have any claim against us after. also, there is a court order to have a hydro poll moved on the property. if we forclose, that is no longer our concern correct? we have unsecured debt and no assets. that is all wiped out as well? lastly, would i lose my long term disability benefits? please advise. thank you,.

Posted from: Ontario

Questions

One Response to “Bankruptcy after illness”



, A licensed trustee said:

I think you’d feel better if you spoke to some one on the phone or in person, but briefly if you file for bankruptcy and surrender the house to the mortgage company you don’t need to worry about CMHC or the mortgage shortfall. Your other unsecured debts will alos surely be dealt with.

I can’t comment on the Court Order without reading the Order – likely the obligation will be transferred to the mortgage company, but I can’t be certain.

Finally, bankruptcy should not have any impact on your disability benefits. To be sure you should contact the benefits provider.

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