If you are facing bankruptcy (or have already been made bankrupt) then keeping your home is possibly your greatest concern and understandably so. Our partners at Pearce & Heers recently posted an article on the steps that can be taken to protect your home from bankruptcy. We have also recently assisted the spouse of a bankrupt to keep their family home without paying a cent! See how it was possible here.
Outline of Steps to Keep your Property in Bankruptcy
You can either keep your property BEFORE bankruptcy or AFTER it.
If you want to save your property BEFORE bankruptcy you can:
- Get your interest in the property valued and then sell your interest to a friend or family member for fair value based upon the valuation. This is important, if you merely transfer your interest for nothing, thinking your trustees can’t do anything about it, you’re wrong. Not only can your interest be pursued by your trustees, you can also face imprisonment. So don’t even consider it!
- Negotiating informal settlements with your creditors to avoid bankruptcy. You may be able to either raise funds against your property’s equity (via a refinance) or could offer your creditors security over your property for payments over time.
If you want to save your home AFTER bankruptcy you can get a family member or friend to make an offer to your bankruptcy trustees to buy your interest in the property for fair value less the mortgage and selling costs (as the Trustees are avoiding these expenses by selling the property directly to a family member or friend.
As always though, it’s better to be proactive about dealing with your property. So if you are facing bankruptcy you should take steps to get your house valued and discuss with family and friends whether anyone could purchase your interest in the property. If you do go through with a sale you should hold the funds received for a trustee to deal with once appointed.
If you are in financial difficulty or already bankrupt and want to save your home then get in touch by calling us on 1300 906 966 or start chatting via the live chat window on our site.