Common Questions About Bankruptcy Foreclosure
A common question about foreclosure vs mortgage bankruptcy is how the process works. Many people wonder if they’ll lose their home or not, what rights their mortgage lender has, or if getting a loan will help them. Some of your questions might be answered in the information above.
In Canada, when you declare bankruptcy, your mortgage isn’t automatically in foreclosure. Your mortgage is a secured debt, so it isn’t included in your bankruptcy. The rules in each province are a little different, so your trustee will explain what happens to your home and your mortgage if you declare bankruptcy, and how declaring bankruptcy can affect foreclosure.