Bankruptcy in Shepparton is a challenging procedure, but I realise from meeting with thousands dealing with the chance of personal bankruptcy for many years that the most frightening aspect is the distress of losing the family residential property.
Nearly everyone is on an emotional degree linked to their home – 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 terrifying to feel that a thing like personal bankruptcy can sweep in and take all that from you.
So, Will you lose your home if you declare bankruptcy?
My response is ‘maybe’– I know it is not a helpful answer, but it is going to really based upon your unique circumstances. People typically believe that losing your house is unavoidable and just one more part of Bankruptcy– but don’t drive yourself crazy right now, as there could be hope.
So how does bankruptcy view my house?
The very first thing to know is that houses are deemed assets– but no two houses will be the same. What you really should be aware of is that when it comes to Bankruptcy, they designate a trustee to oversee the process. Their role is to make sure that they can settle as many of your financial obligations with your asset. This is completed through equity– and if there is no equity in your home then there certainly is no true advantage to selling it.
Trustees not selling residential properties is happening significantly more since the GFC as house prices in many locations have been going south so what you spent 4 years ago may not automatically demonstrate the price these days.
However the biggest part with Shepparton and Bankruptcy is that you definitely need to get a professional to help you with this process, there are lots of factors in these situations that ought to be considered.
For instance, if you have no equity in your home you need to consider your home loan. With loans, you are essentially just a client of the financial institution and they will similarly have a preference– do they want to take your house back, or do they prefer you to keep the loan? You might believe that they would certainly wish to just take the house to avoid the risk, but honestly financial institutions 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 monthly payments. However it is still up to the trustee to establish that there is a lot of equity in your house the trustee will push you and the bank to sell your home.
What is my home worth?
Usually with Bankruptcy it is difficult to know what your house is really worth– yes, you may have an idea if you were selling off your home, but the way that this is worked out in personal bankruptcy is usually different. When you declare insolvency you may need to note down the value of your house, and the amount that you owe– and you can figure this out by using a valuer. Doing 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 valuations– one for a Quick Sale, and one for a non-time sensitive sale. This will certainly give you 2 rational figures that can guide you to correctly value the property and realise its value even when you are being pressed to sell swiftly.
When it comes to Bankruptcy and homes, another major factor to consider is ownership, in most cases homes are bought in joint names. In other words a couple may have bought a house 50/50 utilizing both salaries to make the repayments. If one party declares bankruptcy and the other party does not, the equity is only factored on the 50 % of the home. With Bankruptcy, this is merely one of perhaps numerous circumstances 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 insolvency also. I must repeat this but get some guidance on this area of Bankruptcy given that it is very tricky and each and every case is different.
If you truly would like to find out more about what to do, where to turn and what questions to ask about Bankruptcy, then do not hesitate to talk to Bankruptcy Experts Shepparton on 1300 795 575, or visit our website: www.bankruptcyexpertsshepparton.com.au.