Bankruptcy in Dandenong is a complicated task, but I realise from meeting with thousands experiencing the likelihood of insolvency throughout the years that the most frightening element is the fear of losing the family residential property.
Almost every person is on an emotional level linked 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 terrifying to think that a thing like insolvency can sweep in and take all of that away from you.
So, Will you lose your home if you go bankrupt?
My response is ‘maybe’– I know it is not an useful answer, but it is going to really depend upon your particular conditions. People typically think that losing your house is unavoidable and just another part of Bankruptcy– but don’t make yourself crazy right now, as there might be hope.
So how does insolvency view my house?
The first thing to comprehend is that properties are viewed as assets– but no two houses will be the same. What you ought to be aware of is that when it concerns Bankruptcy, they designate a trustee to oversee the procedure. Their job is to make sure that they can settle as much of your financial obligations with your asset. This is performed through equity– and if there is no equity in your home then there is no true advantage to selling it.
Trustees not selling residential properties is occurring progressively more ever since the GFC as house prices in many areas have been heading south so what you spent 4 years ago may not automatically demonstrate the price nowadays.
However the most significant part with Dandenong and Bankruptcy is that you really ought to get a professional to assist you through this procedure, there are lots of factors in these situations that ought to be taken into consideration.
As an example, if you have no equity in the house you need to think about your bank loan. With loans, you are essentially just a client of the bank and they will also have a preference– do they want to get your home back, or do they prefer you to keep the home loan? You may believe that they would 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. But it is nonetheless up to the trustee to determine that there is lots of equity in your property the trustee will force you and the bank to sell your home.
What is my house worth?
Often with Bankruptcy it is hard to know what your home is really worth– indeed, you may have an idea if you were selling your house, but the way that this is calculated in bankruptcy is typically different. When you declare bankruptcy you may have to note down the value of the house, and the amount of money that you owe– and you can work this out by using a valuer. Doing this is going to be far 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 assist you to properly value the property and grasp its worth even when you are being pressured to sell quickly.
When it comes to Bankruptcy and houses, another major 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 making use of both salaries to make the payments. If one party declares insolvency and the other party does not, the equity is solely factored on the 50 % of the residential property. With Bankruptcy, this is just one of probably various scenarios that are probable 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 too. I should repeat this but get some guidance on this area of Bankruptcy because it is very complicated and every single situation is varied.
If you genuinely wish 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 Dandenong on 1300 795 575, or visit our website: www.bankruptcyexpertsdandenong.com.au.