Bankruptcy Question & Answer Forum - Canada

Author:		Anonymous
Date:		May 8, 2005
Question:		My husband and I took out a second mortgage on our home last month to do some work to the house. Last year we went to a credit counselling company to consolidate all of our credit cards, can we go bankrupt so soon after getting a second mortgage and will we lose our house.
From:		Ann Clarke, Alger & Associates Inc.
Date:		May 9, 2005
Answer:		You can file a bankruptcy anytime but the Trustee will be required to review the second mortgage transaction to see whether you encumbered exempt or non-exempt equity. It is doubtful you will lose your home but the Trustee you see will be able to answer this question once they have all the details. Ann Clarke phone: (403) 296-2972 aclarke@alger.ca