May 26th, 2008 by Questions
if i give my house back to the bank , do i have to go bankrupt
Posted from: Ontario
May 27, 2008 at 10:22 am, Barton Goth - Goth & Company Inc. - Bankruptcy Trustees said:
This really depends on the value of your house and the amount of the mortgage against it. If your house is worth less than the mortgage and you give it back you will be responsible for any shortfall (i.e. the difference between what the property sells for, the sales and reposession costs, and the total amount of the mortgage). This shortfall may cause you to have to file bankrutpcy, but without knowing an estimated amount of the potential shortfall, your typical monthly income, typical montly expenses and a list of any of your other debts it is impossible to tell you if you will have to consider bankruptcy. A bankruptcy can elimiate this shortfall and most of your other unsecued debts, but you should consult directly with a local trustee to determine if it will be necessary.
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