Bankruptcy in Sunshine Coast is a challenging procedure, but I know from meeting with thousands facing the chance of insolvency over the years that the most terrifying facet is the fear of losing the family residence.
Almost everyone is on an emotional degree linked to their home – it’s where the little ones have grown, it’s the place you sleep, eat, relax and built it from a house to a home. So it is terrifying to believe that a thing like insolvency can sweep in and take all that from you.
So, Could you lose your home if you go bankrupt?
My response is ‘maybe’– I recognize it is not an useful reply, but it is going to really based on your specific instances. People normally believe that losing your home is inevitable and just an additional part of Bankruptcy– but don’t make yourself crazy just yet, as there could be hope.
So how does insolvency view my house?
The very first thing to understand is that homes are viewed as assets– but no two homes will be the same. What you should comprehend is that whenever it concerns Bankruptcy, they designate a trustee to oversee the procedure. Their job is to make sure that they can settle as many of your debts with your asset. This is done via equity– and if there is no equity in your home then there is no real benefit to selling it.
Trustees not selling houses is happening significantly more ever since the GFC as house prices in many locations have been going south so what you spent 4 years ago may not automatically reflect the price today.
But the most significant part with Sunshine Coast and Bankruptcy is that you truly need to get a specialist to help you with this procedure, there are plenty of factors in these scenarios that should be considered.
For instance, if you have no equity in your house you should take into account your home loan. With loans, you are practically just a customer of the bank and they will similarly have a choice– will they wish to get your home back, or do they want you to keep the home loan? You may feel that they would want to just take the house to avoid the risk, but frankly banks are run as a business, and if these guys can leave you with a 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 identify that there is a lot of equity in your house the trustee will force you and the bank to sell off the house.
What is my home worth?
Typically 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 home, but the way that this is worked out in insolvency is usually different. When you declare bankruptcy you may have to note down the value of your home, and the amount of money that you owe– and you can work this out by using a valuer. This is going to be much more precise than applying your ‘gut feel’ or a real estate agent. The other important factor is that you ought to ask your valuer for two values– one for a Quick Sale, and one for a non-time sensitive sale. This will give you 2 rational amounts that can help you to effectively value the property and grasp its worth even if you are being pressured to sell quickly.
When it comes to Bankruptcy and houses, an additional major point to consider is ownership, in most cases homes are purchased in shared names. In other words a couple may have bought a house 50/50 utilizing both incomes to make the repayments. If one party declares insolvency and the other party does not, the equity is only factored on the 50 % of the residential property. With Bankruptcy, this is just one of quite possibly various situations that are probable when it relates to the family home. Bear in mind the non-bankrupt party can purchase the bankrupt’s part of the house in insolvency too. I must repeat this but get some advice on this area of Bankruptcy given that it is very complicated and every single situation is varied.
If you really 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 Sunshine Coast on 1300 795 575, or visit our website: www.bankruptcyexpertssunshinecoast.com.au.