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Involuntary bankruptcy

Recently our home went into foreclosure. The mortgage company has not been able to sell the home and is now trying to serve me papers. I have been told they are going for involuntary bankruptcy with a judgement and a trustee recommendation to handle my estate. As I have not been served, if I see a trustee of my own and file will this stop? Thank you

Posted from: British Columbia

One Response to “Involuntary bankruptcy”

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A licensed trustee said...

You have the right to file bankruptcy at any time – so if you file before a petition is heard by the Court the hearing won’t be necessary. It would be quite unusual for a mortgage company to actually petition someone into bankruptcy – there’s no reason for them to do so (they can sell your house via the mortgage). You may want to speak with a lawyer and ask them to confirm the mortgage companies intentions – something sounds a bit “wonky” to me.