In Edmonton, filing bankruptcy, questions about my house.

Hello. I have a number of things that have put me in a position of having to declare bankruptcy. But I was wondering about one thing. I bought a house before I sold my other house and am now behind in payments. I just received a nasty letter stating I have to get caught up immediately and if I don`t then a foreclosure will be initiated. I can afford to make my mortgage payments on the house I am in now but I cannot come up with the total amount in arrears.

Will I lose the house by declaring bankruptcy even if I show I can now make the payments on the house I am in?

Posted on Friday, March 20, 2009 | Filed under: Bankruptcy
 posted by Questions @ 10:15 am 1 Comment
1 Expert Comment:

 At March 26, 2009 | 5:57 am , Barton Goth, Trustee in Bankruptcy Said...

In a bankruptcy most people don’t loose their principle residence. As long as you have less than $40,000 in equity and are up to date with your payments you shouldn’t have any reason to worry. While technically you must have your mortgage lenders cooperation to continue to make payments, practically it is standard practice with most lenders to let someone continue to pay as long as they are up to date currently with the mortgage.

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