Bankruptcy – what happens to the condo?
My fiance owns a business that is failing (perhaps in Feb) and will owe the bank approx 0,000 which was a small business loan which was leveraged against the equity his condo. Can someone tell me what will happen to the condo? Do they reposess it for what the bank estimates it to be worth and we’re out on the street right away? (Condo is worth about 210) Do we get to keep it and he just works and gets his wages garnished? Should we sell it really quick and pay off the loan?(not very possible, but worth a try?) We’re hoping he gets enough customers this month to hold him out for 6 more months, but just incase I’m wanting to know. Thanks so much!!! Also, I live in Canada.
We can pay the mortgage no problem. But the 100,000 IS leveraged against the house, and he has 1.5 yrs left on his lease for his business at about 6000 a month.
I’d imagine the sell it, pay off the bank loan, or atleast most of it, but what happens to the rest of the money? There are no other debtors that that. They don’t pay off the entire lease, do they?
If payments on the condo are not made the mortgage holder will foreclose. You need to talk to them ASAP and work out a payment schedule you can both agree to, or look for another place to live.
I don’t think anyone here on Yahoo! is going to know the answer to this one. You should call the bank and ask them! It would depend on the terms of the loan. If you don’t want to call the bank right now, read the documents that were signed when the loan was made. This is too complicated a situation for anyone on here to know, I think. Also Canadian law would figure into this. Here in the US, the laws that govern this vary from state to state.