If you own your home
The trustee can sell your home if it's the only way to pay your debts.
Before selling your home, the trustee will look at things like:
- the home's value
- if any children live in it
- if you've any loans secured on it
The trustee will discuss all options available to you about your home. They need to do this within the first year of your bankruptcy.
If you do not agree to the sale
If you or your partner do not agree to sell your home, the trustee can apply to the Sheriff Court to force its sale.
The court could:
- grant an order to allow the sale and to evict you
- refuse to grant an order
- delay granting an order for up to 3 years to let you find somewhere else to live
If you own your home with someone else, the trustee can only take the bankrupt's share of the 'equity'. This is the home's value after the mortgage is taken off.
Someone else can buy your share of the equity. For example, the joint owner.
If you're made homeless
The local council will consider you ‘homeless’ if the trustee tells you they need to sell your home. This means they need to help find you somewhere else to live.
If you cannot pay your mortgage
If you do not pay your mortgage the lender can repossess your home. The trustee cannot stop the repossession.
If the bank sells your home to pay the mortgage, they transfer anything left to the trustee. The trustee will use this towards your debt.
If the sale does not cover the mortgage, what's left can be included in your bankruptcy debt.
If you rent your home you should check your tenancy agreement to see if bankruptcy affects it.
If your landlord is a creditor, then the trustee will need to tell them about your bankruptcy.
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