Yes, you will unfortunately loose your property (house, flat, etc). There are different scenarios, which can basically be divided into 3 categories:

1) Your property is bonded, but worth less than what you owe

In this scenario the bondholder will be forced to call up the bond and have their security realised by way of public auction. They will then have an unsecured claim for the shortfall due on the bond account.

2) Your property is not bonded and worth more than what you owe

Once again the bondholder will be forced to call up the bond and have their security realised by way of public auction. The excess will be allocated towards the unsecured creditors once the bond has been settled. It would therefore be better to attempt to sell the property before filing for bankruptcy due to the fact that you would probably obtain a higher purchase price and limit the costs of realisation (auction).

3) Your property is not bonded.

As there is no bondholder, the trustee would n this scenario the bondholder will be forced to call up the bond and have their security realised by way of public auction. They will then have an unsecured claim for the shortfall due on the bond account.

 

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