I declared bankruptcy but kept up my mortgage payments. I\’ve now lost my job and can no longer afford the mortgage payments. The bank said there isn\’t enough equity and there will be a loss when it sells. Does my bankruptcy still cover this anticipated debt or will I be responsible for it.
Bankruptcy Alberta: Free Information about Bankruptcy in Alberta
As the default on the mortgage occurred after a bankruptcy you are going to be responsible for this shortfall. The cut-off for debts to be released is on the day you filed for bankruptcy, so if you originally communicated to the bank that they needed to foreclose and the default occurred around the time for the bankruptcy then you could be cleared from the shortfall. But due to the time that has elapsed since the bankruptcy was filed it cannot protect you in this situation.