November 20th, 2008 by Questions
if you walk away from a property and give it back to the bank (power of sale) does that mean you have to declare bankruptsy?
Posted from: Ontario
November 21, 2008 at 10:06 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
This doesn’t mean you have to file a bankruptcy, but you will be responsible for the shortfall on the mortgage (assuming there is one).
So you may have to investigate a bankruptcy, a consumer proposal or some other option to deal with this shortfall. Although which option is really going to depend on the rest of your financial picture. You may consider meeting with a local trustee to discuss your position and develop a plan to deal with the outstanding amounts.
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