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Did you know that in bankruptcy it is sometimes possible to save your house?

Section One

Introduction

Did you know in bankruptcy it is sometimes possible to save your house?

In fact if you have a large amount of unsecured debt, like ATO debt, credit cards, or guarantees left over from a failed business, then going into bankruptcy now might be the only way to save your house (and your sanity).

The first thing to know is if you go into voluntary bankruptcy then a  Bankruptcy Trustee is appointed.

Importantly, you can ask a Trustee to administer your bankruptcy.

I think it helps to have a trustee lined up before you declare yourself bankrupt as knowing who you are dealing with can make all the difference.

From what I have seen over the years some Trustees will work with you and be cooperative in setting up and program to save the house whereas other Trustees are sometimes more difficult to deal with.

Whoever your Trustee is he or she is obliged by law to deal with the asset, which is the bankrupt person’s equity in the house.  This means the Trustee needs to bring real money into the bankrupt estate, usually equivalent to the value of bankrupt person’s equity.

Take time to read about Pete and Jill’s situation as whilst it is not the only type of Bankruptcy and House situation it is probably the most typical.

 

Continue to Section Two: Pete and Jill