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Ask Leon Your Own Question
Leon
Leon, Solicitor
Category: Australia Law
Satisfied Customers: 42659
Experience:  BEc Dip Ed, Dip Law (SAB) MTax (UNSW)
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We went bankrupt for credit card and personal loan and we

Customer Question

we went bankrupt for credit card and personal loan and we kept our house with the Australian official trustee taking hold of our property. Bankruptcy finished December 2014, but the trustee did not release our property. The trustees sent us a letter informing us that the property has been appraised and is worth 420K - 440K and we owe Royal Guardian (our mortgage brokers) 201K and the Trustees place 100 percent interest which is 218K a balance of 420K. The trustees have given us the option to purchase the property of the for the 100 percent interest and or join the trustee in the sale of the property . The other option is for the trustee to go ahead with a forced sale. When we went bankrupt we were told we could keep our property and once it was over the trustee would release the property. We have now been informed by the Trustee that although the bankruptcy is finished the Trustees can still have ownership of the property for a total of nine years . The property is only worth possibly $280K - 300k and the Trustee have sent 4 agents to get a true valuation of the property . I would like to know if there is any way we can stop the from going through, I mean the reason we went bankrupt was because we were unable to pay the loans but it is impossible I am certain for us to get any loan amount. If we knew this could happen we would have just given up the house from the beginning instead of working2 jobs just to ensure the house payments were always made.
JA: Because real estate law varies from place to place, can you tell me what state this is in?
Customer: New South Wales
JA: Has anything been filed or reported?
Customer: We have only received this letter from Australian Government and the Trustee rang and spoke with my husband and when he mentioned that we had not received any correspondence until this letter the trustee said they do not have to send us any other notification
JA: Anything else you want the lawyer to know before I connect you?
Customer: that is all I know
Submitted: 1 month ago.
Category: Australia Law
Expert:  Leon replied 1 month ago.

Good Morning.

My name is ***** ***** I am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question. Please understand I am very limited on what I can tell you and that you may have to get more detailed advice.

If the debt has not been paid, then the trustee can take the property and sell it.

The only way to save the house is to pay the trustee the balance of the debt that is still owing. Going bankrupt will wipe the debt but if you have assets the trustee will sell them to get the money to pay the debt.

I am not sure who told you that you would not lose the house but that is incorrect information.

They can only take the money owing plus the costs of the trustee and no more the balance will be given to you.

I hope this makes sense and is of assistance. If there is nothing further

thank you for using my services.

If I have missed anything, or you have any further questions please let me know

If there is anything else in the future please do not hesitate to ask.

Please do not forget to leave positive feedback.

Regards

Leon