This website is written in the context that you’re still paying off a mortgage, that you’ve got too much other debt, overwhelming debt, and that if possible you’d like to save the house even though you might go bankrupt.  Well the good news is that quite often the house could be saved.  

Hello, I’m Fred Appleton and I’m a semi retired former Chartered Accountant.   Years ago, when trying to diversify my business interests, something unexpectedly and out of my control went wrong and as I prefer to describe it, the wheels fell off and it sent me bankrupt.  

For well over 10 years now I’ve been giving advice and assistance on bankruptcy matters, free of charge, via the internet, to people all over Australia, just like us, through my website www.fredappleton.com.au  I suggest that you read it at some point.

In bankruptcy and “saving the house” issues (anywhere in Australia by the way) I have teamed up with Alan Nicholls, a like minded Chartered Accountant and Bankruptcy trustee. 

My suggestion is that you call 1300 794 492 and ask to speak to Alan about "saving the house in bankruptcy". If he is not immediately available his staff will take a few details off you and Alan will ring you back.

Alan’s website is www.nichollsco.com.au but there is no need to spend too much time looking at it, apart from helping you satisfy yourself that we are real, and that we are fair dinkum separate business entities.  Alan’s website doesn’t say much, if anything at all, on “saving the house” issues.  That’s left to this website.

A bit of information though, if you go bankrupt, a registered bankruptcy trustee is appointed to administer your bankrupt estate.  His job, his duty in fact, is to realize into cash whatever assets that you’ve got that by law, he can claim.  He then uses these funds, after disbursements and costs and taxes, to pay something to your bankruptcy creditors.

Not all of a bankrupt’s assets are at risk in this way.  For example, generally speaking a bankrupt’s ordinary household furniture is safe.  Cars are rarely lost in bankruptcy if the bankrupt wants to keep them.  My website www.fredappleton.com.au will give you more information here.

Bankruptcy won’t send you broke either, you’ll still be able to earn and keep a good income.  There are no upper limits on how much a bankrupt can earn, none at all, but over a certain amount, called your threshold amount, some income may have to be paid towards your bankruptcy.  

With the permission of your bankruptcy trustee, you can also go overseas while you are bankrupt.  You’ll read about these issues on my bankruptcy website, www.fredappleton.com.au

Concentrating on the house though, I’ll give you a simple scenario so you’ll begin to understand how the house, quite legally and properly, can be saved.

Let’s presume that the house is worth $450000 and that the mortgage is $400000.  You can see there that the owners (presuming joint ownership) have $50000 equity in the house.

Now, in this scenario, only one joint owner is going bankrupt and the mortgage is up to date and the presumption is that without your present debt burden, you’ll be able to keep it up to date.

It’s the bankrupt’s half share of the $50000 equity that the trustee is interested in, and by law, entitled to recover for the bankrupt estate, by forcing the sale of the house if necessary.  

If a sale takes place, the other joint owner is paid his or her share of the net proceeds.

The bankruptcy trustee has got the 3 years of the bankruptcy available to him to realize these funds, or such longer time if the bankruptcy is extended, plus 6 more years after that.

The trustee must recognize the other owner’s rights etc, but if the trustee has to force the sale, bankruptcy law is on his side.

A practical and fair solution to everybody, and one which Alan Nicholls often tries to accommodate if possible, is to offer the bankrupt’s share of the house’s net equity, in this example $25000, to the other joint owner.  In this way, sometimes this transaction may not have to take place for 3 years.  That then gives the other owner time to save the funds, or to see if somebody like grandma can come to the party.

If the bankrupt estate can receive the $25000 in this way, or whatever the bankrupt’s share of the net equity then is, then the trustee would have recovered, for the benefit of the creditors, the same amount as if he had sold the house on the open market.

The above is a fairly simplified example of how houses can be saved in bankruptcy.  There are of course other scenarios, and ts to be crossed and an I or two to be dotted.  

If this is what you’re looking for then you’re invited to contact Alan about them.  He can agree to become your bankruptcy trustee, and handle your bankruptcy and “save the house” issue no matter where you are in Australia.  

Even if a house has no net equity these days we believe that it is could be possible to save the house. Perhaps Grandma or somebody can “buy” off the trustee for what is negotiated as being a fair figure for the bankrupt’s share.

If you’d like to discuss your scenario with Alan Nicholls, then to get the ball rolling, please call him on 1300 794 492 or send an email to This e-mail address is being protected from spam bots, you need JavaScript enabled to view it and in the subject heading simply say "Saving the House- Fred Appleton"

Set out your debt that is leading you to consider bankruptcy, tell him about your job and the amount of wage or salary that is normally credited to your bank account each pay period, your car situation, if you have dependant children or a non working spouse or partner, and then the house details.  He’ll want to know, and be able to check out, its address, its estimated current market value, the amount of the mortgage, the owners’ names, other encumbrances, etc.

Most importantly, give him your phone number.

One thing, you’ll tend to get lost in the system if Alan has to call you more than 2 times and you haven’t answered or returned his calls, so please answer your phone, or return his message promptly, or email him again.

This is not a costly exercise either.  Alan gets paid out of the proceeds that your bankruptcy estate collects in.  My service will prepare the necessary bankruptcy paperwork for you for about $400 to $450.

Other websites are trying to copy us now, they even use information and wording from my website to write theirs. They also try to find out off us answers to questions that they don't know. At least when you contact us you will be dealing with somebody with years and years of experience in bankruptcy and bankruptcy websites.

If you become involved with us you’ll find Alan very fair, no ego trips, but very professional, and he’ll stick to the law.   

And please take the time to read my earlier mentioned website on bankruptcy too. http://www.fredappleton.com.au

Thanks for reading this website, lets now save your house.

Fred Appleton