Bankruptcy and saving your home

How could going bankrupt save your home?

For some people it can. They didn’t plan it, it just happened that circumstances fell their way.

When you go bankrupt normally your debts are forgiven and your assets go to (vest with)  your  Trustee to be sold for your creditors.

However, if you have a home with a mortgage and very little equity the Trustee will not sell it. If you can keep up the mortgage payments the bank will not sell it.

So now all of your other debts are gone and you only have to pay your mortgage. Remember though, the equity part is no longer yours, it is with the Trustee.

To make this worthwhile you need to get control of that equity part back. The good news is it is possible.

If you are going to be able to benefit from this you need to get advice. Contact us for a free assessment of what your position may allow you to do.

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Legal Stuff

Bankruptcy Trustee

AFSA – Australian Financial Security Authority