After much agonizing, my husband and me just this past month have declared bankruptcy. We both own a home but because we held a second mortgage which was in default, the second mortgage company had begun foreclosure action. We've hired a lawyer to file a defence and have managed to obtain a 6 month delay in order to allow us to sell our home and at least save the equity. Because we run a home based business, we would like to buy another home with the equity we will get out of the sale. My question is, can we assume a mortgage or will owning another home be out of the question?

You are allowed to assume a mortgage, or obtain any credit, while you are in bankruptcy, provided you disclose to the mortgage company or lender that you are in bankruptcy.

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