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 wiling 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 when it comes to Bankruptcy, your home is not a protected asset and the trustee needs to release any equity in the property once the mortgage and selling costs are paid. So here's one example of what can happen to avoid selling the family home during bankruptcy.
Here are Brad and Tracey. They are married and share ownership of their $500,000 home 50/50. So far, they have managed to pay $50,000 off the mortgage. Then Brad's business venture fails and he becomes bankrupt. Does that mean they'll lose the house? Not necessarily. There's $50,000 of equity in that house and because Brad and Tracey own it equally, they each have a $25,000 share of that equity. So the trustee approaches Tracey and makes an offer for Tracey to purchase Brads equity in the property for $25,000. Tracey accepts the offer and the Trustee transfers all rights and titles of the property to Tracey. Brad and Tracey can now keep the property and Tracey, who is now the sole owner, is responsible for making the mortgage repayments.
For more information on bankruptcy, check out or bankruptcy page here.