Will the shortfall on my mortgage that is owed to CMHC be cleared by a bankruptcy?
February 25th, 2009 by Questions
I am considering to apply for bankruptcy – I have a mortgage(with no equity on it because it“s a new mortgage) and few unsecured debts.My question is if I let the mortage to fall, and apply also for bankruptcy will this bankruptcy cover the amount I will owe to CMHC (I understood from your site that it could take years for them to come after you for the amount you owe them) – or I will have to apply for bankruptcy the second time when they will get back to me?
Posted from: Quebec
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February 26, 2009 at 10:17 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
As long as the mortgage is defaulted on prior to bankruptcy and the bank is informed of the need to foreclose, then it makes no difference when CMHC comes after you, it would be included in the bankruptcy.