House Fire

January 4th, 2010 by Questions

I just lost my house due to a fire, I had no insurance due to it being cancelled as my furnace was old and I was saving for a new one. I cannot afford to rebuild out of pocket. Is bankruptcy an option?

Posted from: Ontario


One Response to “House Fire”

, A licensed trustee said:

It may be, but your mortgage contract likely stipulated that you maintain insurance on the property. By not maintaining insurance you may have exposed yourself to a lawsuit which bankruptcy will not protect you from.

From a practical standpoint, once you file for bankruptcy the lender may realize they have nothing to gain by suing you, but you need to be aware that they may do so simply because it is their policy.

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