Bankruptcy   Search site              Home   line   About us   line   Contact us   line   Ask an expert   line   Forms   line   Corporate recovery      

Mortgages and bankruptcy in Nova Scotia

If a mortgage deficiency judgment is the only debt which you cannot manage you might consider trying to negotiate a settlement with the insurer that will avoid bankruptcy.

If you have an insured mortgage and cannot make a mortgage payment and it is unlikely you will be able to catch up, or the lender has a judgment, here are some helpful contacts:

Claims Payment Centre 1.866.358.9999

Toll Free: 1.800.511.8888
E-mail: or

Canada Guarantee (Formerly AIG)
Toll Free: 1.866.414.9109 ext. 7001

If you make an assignment into bankruptcy, your Licensed Insolvency Trustee will determine if there is equity in your residence.

Equity is defined as the difference between what the house is worth, and what is owed on the mortgage and other encumbrances (like outstanding property taxes). If there is equity in your residence you may be required to pay this equity to the Trustee. In Nova Scotia there is no exemption. You will not be able to keep the equity in your residence. We can discuss this and other exemptions when we first meet with you.

If there is equity, you may contribute the amount equal to the equity into your bankruptcy (perhaps by borrowing from family or getting a second mortgage - which is difficult if you are bankrupt), and the Trustee will allow you to keep your house. In most cases, the mortgage company will allow you to renew your mortgage after bankruptcy. The reason is simple: the bank would prefer to have you make the mortgage renewal and continue paying off both the principal amount and the interest for the next 25 years than to foreclose and risk losing all the future profit plus an additional amount of money by selling your house at a discounted foreclosure price.

You should check with your lender but in most cases, provided that mortgage payments are up to date, bankrupts are able to make a mortgage renewal after bankruptcy.

debt help and bankruptcy To speak to one of our professionals at Grant Thornton call us at 902-310-6060 for a free, no obligation, confidential consultation.

» Car loans, leases, and bankruptcy


© 2017 Grant Thornton Limited, Licensed Insolvency Trustees. All rights reserved.

back to Bankruptcy home

Confidential callback from a bankruptcy professional

We can call you weekdays from 8:30am to 5:00pm

Please call me

As soon as possible
Today at
Next business day at

My Phone # 


Ask for  


back to Bankruptcy home

Make an appointment

You can meet with us during our office hours, weekdays from 8:30am to 5:00pm


- -


Preferred Date (dd/mm/yy)




back to Bankruptcy Nova Scotia

Ask a question



* Email  

* Question