How to Stop CRA Garnishment After Receiving an RTP Demand Payment Letter

Ever felt the stress of unexpected financial setbacks? How to stop CRA garnishment is a question many Canadians face when dealing with debt issues and a RTP (Requirement To Pay) from the Government of Canada. Understanding the steps to halt this process can alleviate a significant amount of stress and help you regain control over […]

How Many Times Can You Do A Consumer Proposal

Ever felt like you’re stuck in a financial maze with no exit in sight? Debt can weigh you down, making every day feel like an uphill battle. But what if there’s a way to reset and start fresh? How many times can you do a consumer proposal? The straightforward answer is that you can file […]

Who Can Put a Lien on Your House in Canada?

Liens can significantly impact property ownership in Canada, often catching homeowners off guard. Understanding liens—what they are, the types that exist, and who can place them on your property—is crucial for any homeowner. This article unpacks the complexities of liens, explores potential lien holders, and discusses the consequences they can have on property sales. It […]

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Can I hand over my mortgage to the Lender and walk away?

I am 5-years into my personal bankruptcy and, while I was able to keep my home at the time of Discharge due to low equity, I am now faced with a massive home repair bill. On top of my monthly mortgage payment, I will be unable to keep up payment. As I am still in my bankruptcy can I hand over my mortgage to the Lender and walk away?

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One Response to “Can I hand over my mortgage to the Lender and walk away?”

Doug Stuive, CA | Trustee | CIRP said...

A – A personal bankruptcy discharges you from the debts that you had incurred as of the date of filing your assignment in bankruptcy. When you have a secured debt, such as a mortgage, you need to make the decision about continuing or stopping payments and surrendering the house to that creditor at the time you are signing the paperwork. If you choose to surrender your house to the mortgage company at the time you file, then any amount owing to the bank after they dispose of the property would be a debt that is included in your bankruptcy estate. However, if you choose to keep your home after filing your bankruptcy, you are reaffirming your mortgage contract with that company. Any default that occurs on your mortgage after that time would be your responsibility and cannot be discharged with the debts that you included in your bankruptcy.

I should also point out that once you receive a discharge certificate you are not considered to be in bankruptcy any longer. The bankruptcy is over as of your date of discharge. A record that you filed a bankruptcy does stay on your credit bureau report but that does not mean you are still considered bankrupt.