Will I still be liable for my Mortgage?
My question is reference bankruptcy. If I claim bankruptcy and have student loans, credit card debt, a line of credit and mortgage, which debts are cleared by the bankruptcy. I have been told by some people that your student loan and mortgage do not `go away` even if you declare bankruptcy. That you are still liable for the student loan and mortgage, and that legal action can be taken against you if you discontinue payments. Is this the case?
Posted from: Ontario
Let’s deal with the mortgage first – if you intend to stay in the home then you must continue to make your mortgage payments. If you plan on surrendering the home (moving out) then any shortfall from the sale of the home will be dealt with in your bankruptcy.
For a student loan to be dealt with in bankruptcy you must have been out of school for more than 7 years. The critical time is something called your “end of study date” which you may obtain from the National Student Loan Centre. If 7 years have not passed from your end of study date then your student loans will not be dischargeable by bankruptcy.
If you require further clarification I suggest you use the links to contact a trustee in your area and give them a call.