Tag Archives: mortgage

can i buy a home

Can I buy a home after filing for bankruptcy?

Can I buy a home?  A Quora user asks: If I file for bankruptcy, can I still buy a home?

 

Victor Fong, Licensed Insolvency Trustee in Toronto, Canada replies:

The following comments are based on Canadian bankruptcy law. I’m also assuming that you’d be an undischarged bankrupt when you purchase the home.

Yes, in theory you can purchase a home so long as someone is willing to give you a mortgage to finance the purchase and is aware of your bankruptcy. It is an offence to obtain credit over $1,000 without disclosing to a lender that you are an undischarged bankrupt.

Aside from this, a question your trustee will ask is this: if you’re filing bankruptcy, how are you getting the money for the down payment? If someone is gifting you the money, then that gift is subject to seizure by your trustee while you’re undischarged.

With the above in mind, the best thing to do would be to wait until you’re discharge before purchasing a home.

Once you’ve been discharged, can start rebuilding your credit by obtaining a secured credit card. A secured credit card is relatively easy to acquire once you’ve obtained your discharge from bankruptcy. You will need to start using it and paying off the monthly balance consistently.

You’ll also need to start putting some money away for a down payment towards your dream home. In Canada, the minimum down payment is 5% of the purchase price if the price is $500,000 or less. If the purchase price is between $500,000 and $999,999, the down payment is 5% of the first $500,000 and 10% of any amount over $500,000.

take name off mortgage

Can I take my name off a mortgage and then file for bankruptcy?

Take name off mortgage? A Quora user asks:  Can I take my name off a mortgage and then file for bankruptcy?

I’m going to answer your question assuming that you are not on title of the home and that you merely co-signed the mortgage with another person.

If you are on title of the home and you want to remove your name before filing for personal bankruptcy, my answer will be completely different….

Whether you can take your name off your mortgage will depend on your bank. If the bank feels that the other person on the mortgage has the financial ability to carry the mortgage payments herself, then removing your name shouldn’t a problem. However, if it’s the bank’s view that your co-signor won’t be able to carry the mortgage on her own, then they will not remove your name unless she can get another co-signor to replace you that’s acceptable to the bank.