Debt Priority in Bankruptcy
February 6th, 2013 by Questions
If a debtor goes bankrupt and their house is sold as part of the proceedings, I understand that the mortgage company has first right to those proceeds to pay off the outstanding mortgage balance. If there is remaining funds after that resulting from the sale of the home, does the mortgage prepayment penalty that would be applicable have priority over other unsecured lenders?
Posted from: Ontario
Please post a follow up comment below:
(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)