In Monopoly, Can I mortgage properties as I am bankrupted?
Basically, you can mortgage properties to try to avoid bankruptcy. But when it is obvious that you can't, you are supposed to restore the status quo ante, (before you landed on the other person's property), and hand over your property to your creditor as they "were." That is, mortgaged or unmortgaged, as they were at the beginning of your turn.


  If your debt is to another player, you must turn over to that player all that you have of value and retire from the game. In making this settlement, if you own houses or hotels, you must return these to the Bank in exchange for money to the extent of one-half the amount paid for them; this cash is given to the creditor.