Bankruptcy in Coffs Harbour is a complicated task, but I know from meeting with thousands dealing with the possibility of going bankrupt for many years that the most terrifying element is the fear of losing the family house.
Nearly everyone is on an emotional level connected to their home – it’s where the little ones have grown up, it’s the place you sleep, eat, unwind and built it from a house to a home. So it is frightening to believe that a thing like insolvency can sweep in and take all of that off you.
So, Will you lose your home if you go bankrupt?
My answer is ‘possibly’– I know it is not a helpful reply, but it is going to really based on your particular circumstances. People normally think that losing your home is imminent and just an additional part of Bankruptcy– but don’t make yourself mad just yet, because there may be hope.
So how does insolvency view my house?
The very first thing to recognize is that properties are viewed as assets– but no two houses will be the same. What you ought to comprehend is that when it concerns Bankruptcy, they appoint a trustee to oversee the procedure. Their job is to make sure that they can repay as many of your liabilities with your asset. This is performed via equity– and if there is no equity in your home then there certainly is no real benefit to selling it.
Trustees not selling residential properties is happening increasingly 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 today.
But the biggest part with Coffs Harbour and Bankruptcy is that you really should get a professional to assist you with this procedure, there are a number of factors in these scenarios that should be taken into consideration.
For example, if you have no equity in your property you will need to consider your bank loan. With loans, you are basically just a client of the financial institution and they will also have a choice– do they wish to get your house back, or do they want you to keep the loan? You may believe that they would certainly wish to just take your home 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 still up to the trustee to establish that there is lots of equity in your house the trustee will push you and the bank to sell off your home.
What is my house worth?
Typically with Bankruptcy it is difficult to know what your house is really worth– indeed, you may have an idea if you were selling your home, but the way that this is determined in personal bankruptcy is generally varied. When you file for insolvency 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 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 realistic amounts that can guide you to effectively value the property and realise its value even if you are being pushed to sell swiftly.
When it comes to Bankruptcy and homes, another major factor to consider is ownership, in most cases houses are purchased in joint titles. In other words a couple may have bought a house 50/50 using 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 just one of possibly countless circumstances that are likely when it relates 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 since it is very complicated and every situation is different.
If you truly would like to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then don’t hesitate to reach out to Bankruptcy Experts Coffs Harbour on 1300 795 575, or visit our website: www.bankruptcyexpertscoffsharbour.com.au.