The trustee in bankruptcy must deal with any equity or interest you have in a property, for the benefit of your creditors.
This means your property must be sold or the equity in the property realised.
If however the property is jointly owned the trustee may sell your interest in the property to the bankrupt’s co-owner.
A secured creditor such as a bank may choose to sell your property should the mortgage payments fall into arrears. If a surplus of funds exists following sale, these monies will be paid to the bankruptcy estate.
Frequently Asked Questions
- What happens if I have transferred my house or another asset of value to my spouse prior to bankruptcy?
- Are there offences under bankruptcy?
- Can a creditor still contact me insisting on payment once I have become bankrupt?
- Can I be publicly examined if I am made bankrupt?
- Can I continue to use my credit cards after bankruptcy?
- Can I have a bank/cheque account?
- Can I travel overseas whilst I am bankrupt?
- Can my bankruptcy be cancelled or annulled?
- Do I have to make payments from my income to the Trustee?
- Do I need to become bankrupt?
- Do I need to lodge tax returns?
- How do I become bankrupt?
- How does bankruptcy affect my employment?
- How long would I be bankrupt?
- Is my bankruptcy advertised?
- What about debts incurred after bankruptcy?
- What are my rights and responsibilities once bankrupt?
- What happens if someone has guaranteed some of my debts?
- What happens to a debt I forgot about at the time of becoming bankrupt?
- What happens to any assets that have not been sold by the trustee at the date of my discharge?
- What happens to my ABN or can I apply for an ABN now that I am bankrupt?
- What happens to my credit rating?
- What happens to my debts after bankruptcy?
- What if I have a car?
- What if I leave my employment during bankruptcy?
- What is bankruptcy?
- When are creditors notified of my bankruptcy?
- Who would handle my bankruptcy?
- Will I have to appear in court?
- Will I have to pay income contributions whilst I am bankrupt?
- Will I lose my assets?
- Will I lose my house?
- Will my financial records be examined if I am made bankrupt?