Involuntary bankruptcy

October 6th, 2013 by Questions

Recently our home went into foreclosure. The mortgage company has not been able to sell the home and is now trying to serve me papers. I have been told they are going for involuntary bankruptcy with a judgement and a trustee recommendation to handle my estate. As I have not been served, if I see a trustee of my own and file will this stop? Thank you

Posted from: British Columbia

Questions

One Response to “Involuntary bankruptcy”



October 06, 2013 at 11:16 am, A licensed trustee said:

You have the right to file bankruptcy at any time – so if you file before a petition is heard by the Court the hearing won’t be necessary. It would be quite unusual for a mortgage company to actually petition someone into bankruptcy – there’s no reason for them to do so (they can sell your house via the mortgage). You may want to speak with a lawyer and ask them to confirm the mortgage companies intentions – something sounds a bit “wonky” to me.

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