If we had a business and we decided to go bankrupt with the business but the bank made us sign $50,000 of debt in our personal name and they put it against our house, what happens with our home? Does the full amount for the bank go into bankrupts or can they still try to take our house?

Thank you.

If you gave the bank a charge against your home to secure the business debt, it is like a mortgage and, even if you go bankrupt, must still be paid. If you don't pay, the bank probably has the right to foreclose on your home. Your Trustee would be able to verify this once they have seen the loan documents.

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