Will I lose my house if I am made Bankrupt?
On being made bankrupt the beneficial interest in the home will automatically vest in your Trustee in Bankruptcy.
Your Trustee will have three years to deal with that property, and family members will more than likely have rights of occupation for a period of one year.
If there is no equity in the property the Trustee will not look to sell your home because there is no equity in the property and the beneficial interest in the property will re-vest in the bankrupt on the expiry of three years.
If there is equity the Trustee will need to realise that equity and there are several ways in which this can be done. For example the property could be sold or a family member could buy out the Trustee’s interest.
This area of insolvency is extremely complicated and fact dependant, but there are plenty of opportunities to save the house if you are made bankrupt, particularly if action is taken sooner rather than later.
Further information can be found at the following our Bankruptcy and the Home webpage.
However, it would be best to have a free face to face or telephone meeting with a Licensed Insolvency Practitioner and please ring 01326 340 579 or 01305 458 383 to arrange a mutually convenient time and date to discuss the options open to you.
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