Bankruptcy in Tweed Coast is a tough process, but I know from meeting with thousands facing the possibility of insolvency for many years that the most terrifying thought is the concern of losing the family home.
Practically every person is on an emotional degree connected to their house – it’s where the children have grown up, it’s the place you sleep, eat, unwind and built it from a house to a home. So it is scary to feel that something like personal bankruptcy can move in and take all that off you.
So, Will you lose your home if you go bankrupt?
My response is ‘maybe’– I realise it is not a practical response, but it will really depend upon your unique conditions. People typically believe that losing your home is unavoidable and just another part of Bankruptcy– but don’t drive yourself mad just yet, because there may be hope.
So how does insolvency view my house?
The very first thing to know is that houses are considered as assets– but no two houses will be the same. What you really should be aware of is that whenever it concerns Bankruptcy, they appoint a trustee to oversee the procedure. Their role is to make certain that they can repay as many of your debts with your asset. This is completed through equity– and if there is no equity in your home then there certainly is no true benefit to selling it.
Trustees not selling homes is happening considerably more ever since the GFC as house prices in many places have been heading south so what you spent 4 years ago may not immediately demonstrate the price nowadays.
But the biggest part with Tweed Coast and Bankruptcy is that you definitely should get a professional to help you through this procedure, there are a number of variables in these situations that should be considered.
As an example, if you have no equity in your home you will need to think about your bank loan. With loans, you are basically just a customer of the bank and they will also have a choice– do they wish to get your house back, or do they prefer you to keep the loan? You may feel that they would certainly want to just take the house to avoid the risk, but frankly financial institutions are run as a business, and if these guys can leave you with a mortgage to keep earning money off you, they generally will provided that you keep up to date with your repayments. However it is nonetheless up to the trustee to determine that there is a lot of equity in your house the trustee will force you and the bank to sell the house.
What is my home worth?
Often with Bankruptcy it is difficult to know what your house is actually worth– indeed, you may have an idea if you were selling off your house, but the way that this is determined in insolvency is generally different. When you file for bankruptcy you will have to note down the value of your home, and the amount that you owe– and you can figure this out by using a valuer. Doing this is going to be much more accurate 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 valuations– one for a Quick Sale, and one for a non-time sensitive sale. This will certainly give you 2 realistic amounts that can guide you to effectively value the residential property and grasp its worth even if you are being pressured to sell swiftly.
When it comes to Bankruptcy and homes, another significant point to consider is ownership, in most cases houses are bought in shared names. In other words a couple may have bought a house 50/50 making use of both salaries to make the payments. If one party declares insolvency and the other party does not, the equity is solely factored on the 50 % of the residential property. With Bankruptcy, this is merely one of probably countless circumstances that are probable when it is in regards to the family home. Keep in mind the non-bankrupt party can purchase the bankrupt’s part of the home in bankruptcy also. I must repeat this but get some guidance on this area of Bankruptcy since it is very tricky and each and every situation is different.
If you genuinely would like to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then do not hesitate to talk to Bankruptcy Experts Tweed Coast on 1300 795 575, or visit our website: Bankruptcy Tweedcoast