Declaring bankruptcy with a mortgage

What happens to the shortfall on my mortgage?

If your property is sold, and the sale amount is insufficient to payout the mortgage held by your bank, the shortfall is an unsecured debt and will be caught by your bankruptcy. You will not be required to pay the mortgage shortfall.

We are here to help. If you have any questions please give us a call on 1300 794 492 or email hello@understandingbankruptcy.com.au

Further Reading: We recommend our article ‘Types of debt covered by bankruptcy‘ and ‘What is Bankruptcy? How Does It Work?‘.

Ask Us A Question

Give us a call on 1300 794 492
Alternatively, you can leave us a message and we will get back to you as soon as possible