If you've been made bankrupt, you are probably worrying about your house being sold out from under you. The good news is, it's not set in stone. In fact, a number of options exist to help you keep your family home during bankruptcy. It all depends on things such as the ownership structure, the amount of equity in the property and how willing your bank is to cooperate. That's where we can help. The Revive Team has expert knowledge about these situations and can help you achieve the best outcome by saving your family home.
Unfortunately, in bankruptcy, your home is not a protected asset. The trustee is required to release any equity in the property after the mortgage and selling costs are covered. However, here's an example of how you might avoid selling your family home.
Take Brad and Tracey. They're married and co-own a $500,000 home, splitting ownership equally. They've paid $50,000 off the mortgage, leaving $50,000 in equity. Brad's business venture fails, and he becomes bankrupt. Do they lose the house? Not necessarily. Since they each own $25,000 of the equity, the trustee can offer Tracey the chance to buy Brad's share for $25,000. If Tracey agrees, the trustee transfers Brad's share of the property to her. Now, they can keep their home, with Tracey becoming the sole owner responsible for future mortgage payments.
For more information on bankruptcy, check out or bankruptcy page here.
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