If you own a house and there is equity in the house, for example the house value exceeds the mortgage, then the Bankruptcy Trustee will most likely sell the house. If you don’t have any equity in your house, for example the mortgage outstanding exceeds the current value of the house, then your Bankruptcy Trustee may not sell it. The decision to sell your house will be up to the discretion of your Bankruptcy Trustee.
Bankruptcy can become complicated if you own your house jointly with your spouse or a third party. When a house is owned jointly, the Bankruptcy Trustee will only be able to realise the share in the property which the bankrupt held.
Frequently Asked Questions
- Assets – what assets can I keep?
- Assets – can I buy an asset whilst I am bankrupt?
- Bankruptcy – what is it & how long is it?
- Bankruptcy – when should I declare bankruptcy?
- Bankruptcy – can the time period be extended?
- Business – can I trade a business as a bankrupt?
- Bank account – will my Bankruptcy Trustee close my bank account?
- Credit file – will my credit file be affected?
- Credit – can I incur credit after bankruptcy?
- Creditor calls – can creditors continue to call me after bankruptcy?
- Debts – what happens to debts incurred after bankruptcy?
- Debts – will bankruptcy clear all debts incurred before bankruptcy?
- Employment – will it affect my employment?
- Examinations – can I be examined in bankruptcy?
- House – will I lose my house?
- Income – will I lose any of my income in bankruptcy?
- Investigations – will any investigations into my financial affairs be made?
- Offences – can I be liable for any offences in bankruptcy?
- Tax – do I still need to lodge tax returns?
- Transactions prior to bankruptcy – can any transaction be clawed back?
- Travel – can I travel overseas?