Alberta Bankruptcy

Author:

Anonymous

Question:

My common law husband was in an accident approximately 2 years ago. Our morgage insurance has ran at and we owe more than what the house is worth. We also have other debt. We have separaeted and all he gets his CPP. We have a son and i pay for everything with regards to him. Is the only option bankruptcy? I have been told that the penalty to pay out the morgage alone is $15000.00 . We won't get enough selling it to even cover the morgaged amount. Never mind the penalty. He has a brain injury so i do not think he will work again. I not behind at this point but will be.

From:

Alger & Associates Inc.

Date:

Jul 19, 2010

Answer:

You may want to wait to see what happens when the mortgage foreclosure happens. There are some cases whereby a creditor cannot pursue you for an outstanding mortgage balance. If the mortgage was insured with CMHC or GE then they will pursue the outstanding debt but collection may be difficult if your ex has no income and a permanent disability. If they are able to collect and are aggressive in doing so then a bankruptcy would be in order.

Karen Rideout
phone: (403) 296-2973
krideout@alger.ca