February 25th, 2009 by Questions

my spouse and I are considering bankruptcy.We have a mortgage of $250000 and a total home equity line of credit for $95000. If we claim bankruptcy does it take care of the line of credit or does it combine with the mortgage payment ?

Posted from: Alberta


One Response to “mortgage”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

As both the mortgage and home equity line of credit are secured against your house, if you stay in your home they are not cleared and you have to pay them both as originally contracted.

The only scenario in which these amounts would be cleared is if the property was either foreclosed on or you returned it to the bank prior to the filing of a bankruptcy.

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