Foreclosure

January 14th, 2011 by Questions

Hi, I am a mother of two kids and I am currently getting a divorce . My husband is still living in the condo that we both purchase and he is letting it foreclosure and he is filing for bankrupcy. What is going to happen to me? Do I have to file for bankrupcy too? I don\’t want to do that ? How and when do I need to protect myself? I have been living in this country for 20 and never had to file for bankrupcy before!!

Posted from: Alberta

Questions

One Response to “Foreclosure”



, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

If your husband files for bankruptcy he will effectively be cleared from his unsecured debts, including any shortfal from the forclosed property. That will mean that you will be soley responsible for this shortfall.

Now this doesn’t necessarily mean that you have to file bankruptcy, this depends on your income, current debt level, the size of the shortfall and your ability to make payments on this debt. But bankruptcy is definately one way that you can deal with these debts should they be to significant to make payments on in the normal course. As for protecting yourself, if you signed on the debt you are responsible and there isn’t really anything you can do to prevent this from taking place, other than taking posession of the property and either renting it or selling it for enough money to satisfy the mortgage in full.

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