Bankruptcy in Taree is a tough process, but I know from meeting with thousands facing the possibility of personal bankruptcy over the years that the most frightening thought is the fear of losing the family residence.
Almost every person is on an emotional degree linked to their home – it’s where the kids have grown, it’s where you sleep, eat, unwind and built it from a house to a home. So it is frightening to believe that a thing like personal bankruptcy can sweep in and take all of that off you.
So, Could you lose your home if you declare bankruptcy?
My answer is ‘possibly’– I understand it is not an useful reply, but it will really based upon your particular conditions. People usually think that losing your house is unavoidable and just one more part of Bankruptcy– but don’t drive yourself mad right now, because there might be hope.
So how does personal bankruptcy view my house?
The very first thing to understand is that houses are viewed as assets– but no two houses will be the same. What you should be aware of is that whenever it concerns Bankruptcy, they appoint a trustee to oversee the process. Their role is to make certain that they can settle as much of your financial obligations with your asset. This is completed via equity– and if there is no equity in your house then there certainly is no real advantage to selling it.
Trustees not selling homes is occurring significantly more since the GFC as house prices in many locations have been going south so what you spent 4 years ago may not immediately reflect the price these days.
However the most significant part with Taree and Bankruptcy is that you truly ought to get an expert to help you through this procedure, there are plenty of factors in these situations that ought to be considered.
For example, if you have no equity in your home you need to take into account your bank loan. With loans, you are practically just a customer of the bank and they will also have a choice– will they wish to take your house back, or do they prefer you to keep the home loan? You might think that they would want to just take your home to avoid the risk, but frankly financial institutions are run as a business, and if these guys can leave you with a home loan to keep making money off you, they generally will provided that you keep up to date with your repayments. But it is nonetheless up to the trustee to establish that there is a lot of equity in your house the trustee will force you and the bank to sell off your home.
What is my house worth?
Usually with Bankruptcy it is difficult to know what your home is actually worth– indeed, you may have an idea if you were selling your house, but the way that this is worked out in bankruptcy is generally varied. When you declare insolvency you will have to note down the value of your home, and the amount that you owe– and you can work this out by using a valuer. This is going to be far more precise than using your ‘gut feel’ or a real estate agent. The other important factor is that you will need to ask your valuer for two prices– one for a Quick Sale, and one for a non-time sensitive sale. This will give you 2 rational figures that can help you to effectively value the property and understand its value even if you are being pushed to sell swiftly.
When it comes to Bankruptcy and homes, another major point to consider is ownership, in most cases homes are bought in joint names. In other words a couple may have bought a house 50/50 utilizing both of these incomes to make the payments. If one party declares bankruptcy and the other party does not, the equity is only factored on the 50 % of the property. With Bankruptcy, this is merely one of perhaps countless scenarios that are likely when it is in regards to the family home. Bear in mind the non-bankrupt party can buy the bankrupt’s part of the home in bankruptcy also. I should repeat this but get some guidance on this area of Bankruptcy because it is very complicated and every situation is varied.
If you genuinely want to find out more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to reach out to Bankruptcy Experts Taree on 1300 795 575, or visit our website: www.bankruptcyexpertstaree.com.au.