Just to get your answer straight. The foreclosure was part of our bankruptcy. We owed a couple of thousand on plc so that allowed us to go bankrupt right away and get it over with (as you only need to owe $1000 in Canada) and include our house in the bankruptcy. That seemed like a better idea than just going through foreclosure as it will probably take a long time to sell the house (it is in an extremely depressed area of BC where only employer who closed down etc and all the houses in that area are $100,000 less than 2 years ago). We didn't want to have this hanging around our neck for years and at the end still owe a bunch of money and have to declare bankruptcy anyway.

Thanks again for the info.

Some Trustee's in bankruptcy are a real disappointment and lazy when it comes to taking care of their clients and explaining things; my business competes with bankruptcy as a debt relief option so I suggested speaking to the trustee as a baited question to expose that very issue.

The short answer is if a debt isn't included in the bankruptcy and discharged it can appear post bankruptcy on your credit - so depending on the banks policy on listing any monies owed after the foreclosure it may or may not show up on your credit.

I've seen tens of thousands of credit reports but I haven't seen any foreclosure deficiency's listed, but that doesn't mean they won't or can't do it.

IMO - Cross that bridge when you get there, no point in worrying right now.

I did ask our trustee and they didn't know. They said they don't know how the credit bureau scores are determined.

Thanks.

Thats a good question, you should direct that to your trustee. Its something they should have the capacity to answer.

RE: Credit - follow these tips and you will be fine: http://www.totaldebtfreedom.ca/articles/article_2.htm

We declared bankruptcy after the housing market crash in 2008 wiped us out. We have surplus income so will be discharged in 21 months.

We are hoping to obtain a mortgage on a $120,000 condo after being discharged (and not have to wait 2 years to do so). I talked to a couple of mortgage brokers to see if this would be possible. While discussing lenders a well known BC credit union was mentioned as a possibility. I talked to the loans dept. at the credit union. As as we would be putting down at least 40% they said we could probably qualify for a mortgage with them after being discharged for 6 months as we were able to put down such a large deposit. I thought why not move our banking to the credit union now. When making the appt. they said they would be doing a credit check on us before signing us up to see if we were good enough to be allowed to bank with them. So I fessed up to being bankrupt, told the clerk the sad story of how it happened and said, if you are just going to turn us down for an account anyway please just tell me now instead of doing a credit check and then turning us down which would then show as another black mark on our credit. He said based on my excuse for bankruptcy he would give us the account. When we went in to do the paperwork he checked our credit scores. Mine was 690 and my husbands was 710. Our bankruptcy was listed with the credit rating company. The clerk was surprised our credit rating was so good.

My question is this. The bank foreclosed on our retirement home and it went to court so now they have to try to sell it. When they do, and they figure out what the shortfall is as they won't be selling it for anything near what we owed. Does that shortfall amount then show up on our credit and thus bring our score down more or is the initial filing of bankruptcy the end of the damage to our scores.

Also, somehow we managed to get a mastercard for $1000.00 without it being secured. I told them we were in bankruptcy (as required as per our trustee). I have been charging about 20-25% of the card every month and then paying it off right away. Is this going to improve our credit score or do we have to maintain a balance and make sure we pay at least the minimum payment. I don't want to pay interest and am only using the card to improve our credit.

Thanks for the info.