Job loss and Bankruptcy

June 29th, 2008 by Questions

Hi there. I have recently lost my job in the local paper mill here in my little town. I now have to leave the province to find work but I won`t be making anywhere near the amount of money I had made previously. I think bankruptcy is inevitable. We would like to make an attempt at keeping our house here in town. If I protect my home in the Bankruptcy and find that I cannot make the mortgage payments later on down the road during the 9 month period, can I remove the house from the protected list?

Posted from: British Columbia


One Response to “Job loss and Bankruptcy”

, A licensed trustee said:

Unfortunately, you do not have the option of changing your midn regarding your hosue (or any other secured debt). If you decide to continue to make payments towards a secured debt at the outset of your bankruptcy them you effectively exclude the debt from the procedure. Later, if you default on the secured loan the lender may sue you or take any other action to legally collect the debt.

If you decide to keep the house (and that’s a reasonable thing to want to do) then you need to make it a priority. If you have to sell it later and there’s a shortfall you will be held responsible for the debt.

Good luck sorting things out.

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