Selling Your Home During Bankruptcy: What You Need to Know

As an entrepreneur, you strive to make your business a success. However, unforeseen circumstances can sometimes lead to expenses exceeding revenue, resulting in bankruptcy. But what does this mean for your home? Are you required to sell your house in the event of bankruptcy? This depends on several factors, such as your company’s legal structure and the extent of your debts. Let’s take a closer look.

Business or Personal Bankruptcy

In the case of a business bankruptcy, the impact on your personal situation depends on the legal structure of your company. If you operate as a limited liability company (bv), your business and personal finances are typically separate, meaning your private assets are at lower risk. In this scenario, the consequences are usually limited to your business assets.

However, if you run a sole proprietorship, a partnership (vof), or operate as a freelancer, you are personally liable for your business debts. In these situations, bankruptcy can directly affect your personal finances and may impact your home.

Do You Have to Sell Your Home During Bankruptcy?

Whether you are required to sell your home during bankruptcy depends on various factors:

• The value of the property: If your mortgage exceeds the current value of your home, selling may not make sense as it would result in additional debt.

• Ownership of the property: If the house is solely in your partner’s name, the trustee cannot force the sale of the home. However, if you are married under community of property, the situation may differ.

There is no straightforward answer to whether you need to sell your home during bankruptcy; the outcome depends heavily on your personal circumstances.

Need Help Selling Your Home?

Are you considering selling your home and looking for a reliable real estate agent? The team at KIJCK. Makelaars is here to help! With our unique approach, we ensure that your property is sold at the best price and under conditions that suit your situation. We offer a fixed all-in fee of just €3950,-, regardless of your home’s value.

If you have questions about how bankruptcy might affect the sale of your home or want to learn more about our services, feel free to contact us. We are happy to assist you.