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Foreclosure & shortfall

My home is about to be foreclosed on as I have been unable to sell it and can no longer pay the mortgage. Once it is foreclosed on and CMHC comes after me for the shortfall would the debt then be considered an unsecured debt and give me the option for partial bancruptcy through a credit proposal? I have no other assets other than my car and about 15,000 in credit card debt so don`t want to claim full bancruptcy over what will like end up being approximately 50,000.

Also can they force me to sell my car if I commute about an hour to work with 2 kids? The car is only worth maybe 9,000.

Posted from: British Columbia

One Response to “Foreclosure & shortfall”

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A licensed trustee said...

The shortfall on your home is a debt that will be included if you file for bankruptcy or a proposal. CMHC doesn’t move very quickly so don’t be surprised if you don’t hear anything about the results of the sale process for some time – it may take them years to get around to trying to collect from you.

If you own the acr out right (ie you don’t have a loan payment for it) then the value of the car will be included in the calculation of how much of your debt you will need to offer to repay in a proposal.

After you’ve moved out of the house use the links on this site to find a trustee and discuss your options.