Your Options When You Own A Home
Bankruptcy can be an option to Save your House.
Saving you home will depend on you circumstances and will also depend on the amount of debt and equity you may or may not have in the home.
Give us a call and we will go through it with you.
What if there is equity?
For example: you owe $200,000 to the bank on your mortgage, and the current value of the house is $220,000. This means you have equity in the property of $20,000.00.
If You have a partner and they joint owners in the property and not the debt, the the equity is divided by two(2) therefore the Trustee only has interest in $10,000 of the equity as the other $10,000 is your partners and they are not affected by your bankruptcy if they are not going bankrupt.
Your trustee or a secured creditor can still make a claim against your house as there is equity.
What if there is no equity?
No equity means that you owe more to the creditor than the house is worth.
For example: you owe $200,000 to the bank on your mortgage, and the current value of the house is $120,000. This means you have no equity in the property and owe $80,000.00 to the bank.
Your trustee or a secured creditor can still make a claim against your house, even if there is no equity.
What happens to my house?
When you become bankrupt, your trustee becomes the owner of your share of any house or property that you own. This means your trustee now has control over the property and can sell it to help pay your debts.
There is important information below to help you understand how this may impact you. We encourage you to seek financial advice for further understanding.
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