Will I Lose My House in Bankruptcy?
In the End It Comes Down to Assets and Liabilities
Our aim is to always carefully consider the options for our clients during a Bankruptcy process. This includes the evaluation of all assets that can help service the debts incurred by our client.
We have years of experience in working with ordinary Australians that have found themselves in a difficoult financial position and we know that this can happen to anyone. The benefit when partnering with us is that we have the knowledge, experience and tools to help you achieve the best possible outcome as quickly as possible.
The law is clear that all assets and liabilities need to be accounted for but makes provision for all considerations to be fair. The Bankruptcy process also needs to ensure that all liabilities need to be paid via the equal distribution of all assets that were raised by the Trustee.
There Are Ways to Keep Your Home
We always try and find ways to help our clients to raise all the required assets needed to service all their debts without the need to ever sell their homes. Working with so many clients over the years, we understand the human element better than anyone.
Our aim is to always give the best possible advice in cases like this where a family home might need to be sold. Fortunately, there are ways to use the frameworks of the law to prevent you from selling your home during a Bankruptcy process. There are however multiple things to consider carefully and they include the following:
Consideration | The Value of Your House and How Much You Owe the Bank
The appointed trustee will always try to establish the amount of equity in any asset to see how much can be derived from it to service debts. If your home has enough equity and all your other assets do not raise the sufficient amount needed, then the house could be attached.
If there is a mortgage on the house, then the bank will be entitled to be paid out first to cover the remaining bond. The remaining equity after the mortgage was paid can then be channeled towards the Bankruptcy process.
Consideration | Is There Co-Ownership Involved?
If you and your partner have a joint mortgage on the property that is registered in both your names, then there are options available to you. If the trustee finds that there is enough equity in the house after the mortgage costs are subtracted, you will essentially own half of the remaining equity.
To prevent the selling of the house, you would need to raise that 50% of remaining equity and pay it towards the bankruptcy pool. This will then exclude your home from the Trustee’s list of assets, but it will transfer complete ownership of the house to your partner.
Sometimes Selling Your Home Is the Sensible Choice
This is definitely not the easiest thing to deal with, especially if the house in question has a lot of sentimental value to the family undergoing the Bankruptcy process. We definitely understand this and will always approach any sale of an assets with a greatest care and sensitivity it deserves.
The benefit that comes with years of experience and having the industry’s best to help you through this difficoult period is that we can often help create new insights that would not have been identified otherwise.
If your home for arguments sake is completely paid up, and it has all the required equity to service all your debts, then it can make complete sense to sell it and take the remaining money left to put towards a new purchase. This will by far be the most stress-free way of securing a resolution for you.
Keep Your Home and Simply Refinance It to Raise the Capital You Need
On the other hand, if we take the same scenario where a paid-up property has enough value to service all the debts, then a possible refinancing option like a second mortgage could be considered versus the sale thereof.
This second mortgage will raise the capital needed to pay your creditors and may offer you a more affordable way to have repayment plans that are affordable to you. It is the option that will also have the least amount of disruption on you and your loved ones.
As a Trustee in Bankruptcy, Ross Thomson is often required to think outside the box. As well as creative thinking, Ross brings compassion to the table.
For Ross, it’s important to see the people behind the financial problem –not just numbers.
Ross recently helped a bankrupt client who lives in a retirement village with her seriously ill husband.
The unit she & her husband live in is not owned by them, but subject to a 20-year lease.
The money to be repaid by the management was due only at sale, when the client finally left the retirement village.
Sale of the unit was likely to take several years &, if he did sell the couple’s unit, Ross realised he would be effectively evicting them from their home, without resources or family to help them.
Ross decided to contact the retirement village management & put a proposal to them that they prepay some of the moneys they would otherwise pay the client.
The village management considered the proposal & have agreed to prepay some of the moneys otherwise due.
The client is relieved that she will not be evicted & can now concentrate on helping her husband through his health issues.
The moneys paid represented about 75% of what would have been available to creditors if they waited two years.
It is a win for the client and for the creditors.
I made an appointment with Andrew after finding him on google. I was nervous and apprehensive about what to expect but he made the process of bankruptcy extremely uncomplicated and stress free, allowing myself the opportunity to get the fresh start I was so desperate for. Thank you Andrew I could not recommend you enough.
Making the decision to go bankrupt was not easy however once I had spoken to Andrew i felt all my anxiety disappear. Andrew does not judge you and he has an innate ability to put you at ease. He took care of the whole process for me again reducing the stress involved with completing paperwork.
Thank you very much.
I will definitely recommend Andrew Bell to anyone contemplating bankruptcy. Don't wait! Andrew is there to help. With his knowledge, he can advise you of the best path to take and assist with the mind boggling paperwork.
Best of all, he is there for you through your entire bankruptcy period. Get your life back, it's not as bad as you think. Thank you Andrew for lifting the burden and allowing me to move on.
I saw Andrew for 'advice only' on possible bankruptcy due to a divorce. Left an hour later with the paperwork all done and feeling like a new person!
Andrew was extremely welcoming and made me feel so comfortable with my decision to proceed immediately.
This was the best investment I have ever made and cannot speak highly enough of Andrew. He doesn't just give excellent service his follow up afterwards is amazing. Thankyou Andrew you made my 'new' life so easy to achieve!
Andrew was very helpful in helping me through the bankruptcy process, as a single mother left with a massive debt from my ex and our previous marriage. I was struggling to keep my head above water on a week to week basis.
Andrew made me feel at ease immediately and helped me every step of the way, he happily and professionally answered any and all questions I had before, during and after the process. Thanks so much for your help Andrew!
Would highly recommend Andrew to anyone having financial difficulties. Andrew made me feel very comfortable - he took care of everything and keep in regular contact with me throughout the whole process.
Service was fantastic and he also keep in regular contact with me when everything had been finalised Thanks Andrew! can now get my life back on track.
Very prompt service and excellent source of knowledge and information, I highly recommend Andrew's service for a quick turn around of circumstances.
Andrew put my mind at ease in one easy appointment. Very satisfied with the outcome and service provided. Highly recommend Andrew.
Andrew was a steadying hand with his advice.Showing that things aren't as bad as first thought nor any obstacle insurmountable. If you have questions needing answers, Andrew is the person to ask. Thanks for your advice Andrew.
Andrew was very knowledgeable, caring, helpful and compassionate when I went and saw him. He made me feel that I wasn’t the loser and failure that I thought I was being. Even down to the box of tissues on the table.. which I needed. Highly recommend to go see Andrew if your struggling. There is life after!
Andrew and his team do an excellent job of helping their clients with bankruptcy advice and it is a pleasure to work with him.
Don't hesitate contacting Andrew, I was stressed, struggled sleeping through debt. Andrew put me at ease. He listened to my situation and we decided on my next move. Andrew is professional and easy to talk too. I would recommend highly to anyone who wants help to give him a call. I appreciate your support Andrew. Regards Brett.
Andrew has given me back my life!!! After living paycheck to paycheck, I didn’t know what to do. Until I made the big step and booked an appointment with Andrew. As soon as I left his office I felt a huge weight lifted!!!
Andrew was prompt, organised, friendly and efficient with the processing of my documents and made everything very simple for me so I didn’t need to deal with the added pressure and stress. Thank you Andrew for allowing me to start afresh and getting it done within a matter of weeks.
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