Can I stay living in my home?
When you become bankrupt, you will be able to remain living in your home whilst the Trustee commences administering your estate.
If your property displays no or minimal equity your Trustee will likely agree to you continuing to live in your home. You will have to continue paying the mortgage, rates, insurances and if relevant body corporate fees for the property.
Should your property commence to display sufficient equity during your bankruptcy to justify the cost of selling your home, the Trustee would be obligated to pursue the sale of your home.
How to keep your home when you are bankrupt
There are many ways you and your family can remain living in your home. To give you some idea, here are a couple of examples:
- If you own your home jointly with your non-bankrupt partner and you both want the family to remain living in the home – that is possible. The trustee will organise for your partner to buy out the interest of the bankrupt estate in your home.
- It is also possible for another family member to buy the property, enabling you and your family to remain living in the property.
- If you are at retirement age and able to legally access your super, your super is safe and can legally be used to save your home.
There are many options for you to remain living in your home and you do have time to work out what you want to do.