Bankruptcy in Gosford is a complicated task, but I know from meeting with thousands facing the likelihood of insolvency over the years that the most frightening thought is the concern of losing the family residential property.

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Nearly 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, relax and built it from a house to a home. So it is distressing to believe that a thing like bankruptcy can move in and take all of that away from you.

So, Will you lose your home if you go bankrupt?

My answer is ‘maybe’– I know it is not a helpful response, but it will really depend upon your specific circumstances. People generally believe that losing your house is imminent and just an additional part of Bankruptcy– but don’t make yourself mad right now, as there may be hope.

So how does insolvency view my house?

The first thing to recognize is that homes are considered as assets– but no two houses will be the same. What you need to comprehend is that when it concerns Bankruptcy, they designate a trustee to oversee the procedure. Their job is to make certain that they can settle as much of your financial debts with your asset. This is completed through equity– and if there is no equity in your house then there certainly is no real advantage to selling it.

Trustees not selling homes is happening increasingly more ever since the GFC as house prices in many areas have been going south so what you paid 4 years ago may not instantly reflect the price these days.

But the most significant part with Gosford and Bankruptcy is that you really should get an expert to assist you through this process, there are plenty of factors in these situations that should be considered.

For example, if you have no equity in your property you will need to consider your home loan. With loans, you are practically just a client of the bank and they will similarly have a choice– do they want to get your house back, or do they want you to keep the home loan? You might expect that they would certainly want to just take the house to avoid the risk, but honestly financial institutions are run as a business, and if they 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 identify that there is a lot of equity in your home the trustee will force you and the bank to sell your home.

What is my house worth?

Usually with Bankruptcy it is hard to know what your house is really worth– yes, you may have an idea if you were selling your home, but the manner in which this is calculated in bankruptcy is generally different. When you file for insolvency you will need to note down the value of your home, and the amount of money that you owe– and you can work this out by utilizing a valuer. Doing this is going to be far more precise 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 certainly give you 2 rational figures that can assist you to properly value the property and grasp its value even if you are being pressured to sell quickly.

When it comes to Bankruptcy and properties, an additional major consideration is ownership, in a lot of cases houses are bought in joint names. In other words a couple may have bought a house 50/50 utilizing both of these incomes 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 residential property. With Bankruptcy, this is merely one of possibly numerous instances that are likely when it relates to the family home. Bear in mind the non-bankrupt party can purchase the bankrupt’s part of the house in bankruptcy also. I should repeat this but get some advice on this area of Bankruptcy since it is very tricky and each and every case is varied.

If you genuinely want to find out more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to talk to Bankruptcy Experts Gosford on 1300 795 575, or visit our website: www.bankruptcyexpertsgosford.com.au.

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