Personal Bankruptcy Forum


Author:   Debtor
Date:   January 15 , 2002
Question:  

I am nearly at the limit of both my credit card limits and a secured line of credit. A private party is willing to give me a loan to help bridge my situation if I use it to pay down my secured loan, and give a second mortgage. Should any of my credit card creditors put me into bankruptcy, would the payment to the secured creditor be safe? Also, would the second mortgage be secure as against unsecured creditors?

 


From:
 

Ann Clarke, Collins Barrow Limited
Date:   January 18, 2002
Answer:   If the person being given the second mortgage is advancing funds to help pay debts, that payment should be safe from challenge and from the unsecured creditors.

Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca




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