Bankruptcy in Mildura – Stressed about losing your home?

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Bankruptcy in Mildura – Stressed about losing your home?

Bankruptcy in Mildura is a complicated procedure, but I realise from meeting with thousands facing the chance of going bankrupt over the years that the most terrifying facet is the fear of losing the family residential property.

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Nearly everyone is on an emotional level connected to their house – it’s where the kids have grown up, it’s where you sleep, eat, relax and built it from a house to a home. So it is distressing to believe that something like personal bankruptcy can sweep in and take all of that from you.

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

My response is ‘maybe’– I realise it is not a helpful reply, but it will really based upon your unique circumstances. People generally think that losing your home is inevitable and just another part of Bankruptcy– but don’t make yourself mad just yet, as there may be hope.

So how does insolvency view my house?

The very first thing to recognize is that homes are viewed as assets– but no two homes will be the same. What you ought to be aware of is that when it concerns Bankruptcy, they designate a trustee to oversee the process. Their job is to make certain that they can pay off as much of your financial debts with your asset. This is done via equity– and if there is no equity in your house then there is no true benefit to selling it.

Trustees not selling homes is happening increasingly more since the GFC as house prices in many locations have been going south so what you spent 4 years ago may not immediately reflect the price nowadays.

But the most significant part with Mildura and Bankruptcy is that you really need to get a specialist to assist you through this procedure, there are lots of variables in these situations that should be taken into consideration.

For example, if you have no equity in your property you should think about your home loan. With loans, you are practically just a customer of the bank and they will also have a choice– will they wish to take your house back, or do they prefer you to keep the home loan? You may feel that they would want 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 loan to keep generating income 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 determine that there is lots of equity in your house the trustee will push you and the bank to sell your home.

What is my home worth?

Often with Bankruptcy it is hard to know what your home is actually worth– indeed, you may have an idea if you were selling off your home, but the manner in which this is worked out in insolvency is generally different. When you declare bankruptcy you will 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. This is going to be far more accurate than applying your ‘gut feel’ or a real estate agent. The other important factor is that you should ask your valuer for two prices– one for a Quick Sale, and one for a non-time sensitive sale. This will certainly give you 2 realistic amounts that can help you to properly value the property and realise its value even if you are being pressured to sell quickly.

When it comes to Bankruptcy and houses, an additional 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 utilizing both of these salaries 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 home. With Bankruptcy, this is merely one of quite possibly countless situations that are probable 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 recommendations on this area of Bankruptcy since it is very tricky and each and every case is varied.

If you truly 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 Mildura on 1300 795 575, or visit our website: www.bankruptcyexpertsmildura.com.au.

By | 2016-12-01T05:25:22+00:00 December 1st, 2016|Articles, bankruptcy, blog|0 Comments

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