January 7th, 2012 by Questions
Does the mortgage on the house and property stay secure regardless of any proposals to eleminate my debt.
Posted from: Ontario
January 07, 2012 at 1:51 pm, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
Yes, the mortgage would stay in place and to stay in the property you would need to continue to make payments on the mortgage as originally contracted. The consumer proposal is designed to deal with your unsecured creditors. So the only way a mortgage gets involved is if the bank seized the property before a consumer proposal is filed (as this would turn them from a secured debt to an unsecured).
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