- 0 Comments
- December 1, 2016
- by admin
- Leave a comment
Bankruptcy in Gladstone is a challenging task, but I recognize from meeting with thousands encountering the likelihood of personal bankruptcy over the years that the most terrifying facet is the distress of losing the family house.
Almost every person is on an emotional level attached to their house – it’s where the little ones have grown, it’s the place you sleep, eat, unwind and built it from a house to a home. So it is frightening to think that a thing like bankruptcy can sweep in and take all of that away from you.
So, Could you lose your home if you declare bankruptcy?
My answer is ‘possibly’– I know it is not a helpful response, but it is going to really depend upon your unique conditions. People usually believe that losing your home is unavoidable and just one more part of Bankruptcy– but don’t make yourself mad just yet, as there may be hope.
So how does personal bankruptcy view my house?
The first thing to know is that houses are deemed assets– but no two homes will be the same. What you need to grasp is that whenever it concerns Bankruptcy, they appoint a trustee to oversee the procedure. Their role is to make sure that they can repay as many of your financial debts with your asset. This is performed via equity– and if there is no equity in your house then there is no true 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 demonstrate the price today.
But the biggest part with Gladstone and Bankruptcy is that you truly ought to get a professional to help you with this procedure, there are a number of factors in these situations that ought to be considered.
For instance, if you have no equity in your home you should take into account your home loan. With loans, you are practically just a client of the bank and they will also have a choice– will they want to get your home back, or do they want you to keep the loan? You may believe that they would wish to just take your home to avoid the risk, but frankly banks are run as a business, and if they can leave you with a mortgage to keep generating income off you, they generally will provided that you keep up to date with your monthly payments. However it is nonetheless up to the trustee to determine that there is a lot of equity in your house the trustee will push you and the bank to sell off the house.
What is my home worth?
Often with Bankruptcy it is hard to know what your house is really worth– indeed, you may have an idea if you were selling your house, but the way that this is worked out in insolvency is usually varied. When you declare bankruptcy you may need to note down the value of your house, and the amount of money that you owe– and you can work 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 will need to ask your valuer for two valuations– one for a Quick Sale, and one for a non-time sensitive sale. This will give you 2 rational numbers that can assist you to correctly value the residential property and grasp its worth even if you are being pressed to sell promptly.
When it comes to Bankruptcy and properties, an additional significant consideration is ownership, in a lot of cases homes are purchased in joint names. In other words a couple may have bought a house 50/50 using both of these 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 property. With Bankruptcy, this is merely one of perhaps numerous instances that are probable 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 considering that it is very complicated and every situation is varied.
If you really want to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to reach out to Bankruptcy Experts Gladstone on 1300 795 575, or visit our website: www.bankruptcyexpertsgladstone.com.au.