Bankruptcy in Gold Coast is a difficult process, but I know from meeting with thousands experiencing the chance of insolvency over the years that the most frightening facet is the concern of losing the family house.
Practically every person is on an emotional degree connected to their house – it’s where the little ones have grown up, it’s the place you sleep, eat, relax and built it from a house to a home. So it is distressing to feel that something like bankruptcy can move in and take all that from you.
So, Could you lose your home if you declare bankruptcy?
My response is ‘possibly’– I know it is not a practical reply, but it will really based upon your specific scenarios. People typically believe that losing your house is imminent and just one more part of Bankruptcy– but don’t make yourself crazy just yet, as there might be hope.
So how does personal bankruptcy view my house?
The very first thing to know is that homes are deemed assets– but no two houses will be the same. What you really should grasp is that when it comes to Bankruptcy, they designate a trustee to oversee the procedure. Their task is to make sure that they can pay off as much of your financial obligations with your asset. This is done via equity– and if there is no equity in your home then there is no real advantage to selling it.
Trustees not selling residential properties is occurring significantly more ever since the GFC as house prices in many areas have been heading south so what you spent 4 years ago may not automatically demonstrate the price today.
But the biggest part with Gold Coast and Bankruptcy is that you definitely should get a professional to assist you through this process, there are lots of variables in these situations that ought to be taken into consideration.
As an example, if you have no equity in your home you should think about your home loan. With loans, you are practically just a customer of the financial institution and they will similarly have a choice– do they wish to take your house back, or do they want you to keep the loan? You may believe that they would want to just take the house to steer clear of the risk, but frankly financial institutions are run as a business, and if they 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 still up to the trustee to establish that there is lots of equity in your home the trustee will force you and the bank to sell the house.
What is my home worth?
Usually with Bankruptcy it is difficult to know what your house is actually worth– yes, you may have an idea if you were selling your house, but the manner in which this is determined in insolvency is usually varied. When you declare bankruptcy you may need to note down the value of your home, and the amount of money that you owe– and you can figure this out by utilizing 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 should ask your valuer for two values– one for a Quick Sale, and one for a non-time sensitive sale. This will certainly give you 2 rational amounts that can guide you to correctly value the property and appreciate its value even when you are being pressured to sell quickly.
When it comes to Bankruptcy and homes, another significant point to consider is ownership, in a lot of cases houses are purchased in joint names. In other words a couple may have bought a house 50/50 making use of 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 residential property. With Bankruptcy, this is merely one of possibly various instances that are likely when it is in regards to the family home. Remember the non-bankrupt party can buy the bankrupt’s part of the house in bankruptcy too. I should repeat this but get some recommendations on this area of Bankruptcy because it is very complicated and every single case is different.
If you truly want to find out more about what to do, where to turn and what questions to ask about Bankruptcy, then do not hesitate to reach out to Gold Coast Bankruptcy Centre on 1300 795 575, or visit our website: www.goldcoastbankruptcycentre.com.au.