House Has $30k or More in Equity
Bob and Sue have made the very hard decision to declare bankruptcy, the biggest concern is their family home on which they have a mortgage for $670,000. Their home is valued at $700,000 so they have $30,000 equity in the property. So, in Qld, what will happen to their house when they file for bankruptcy? In this case study we can consider the equity as anything above $30,000 so this would be the same scenario as if their equity was $30,000, $100,000, $300,000 or $1,000,000 it does not make any difference the principle is the same.
Surrendering the House to the Bank.
Bob and Sue have come to the hard decision to apply for bankruptcy and they are considering what to do with the house as they have no equity in it and they simply cannot afford the mortgage any longer.
So, Bob and Sue decide to surrender their house to the bank. The very first thing we at Bankruptcy Experts Cassowary Coast would do for them is get them to sign a legal document which is like a deed of release meaning they have voluntarily surrendered their house.
A Question of Caveats
Bob and Sue have owned a property for several years, have worked really hard and have $200,000 equity in their home. Their home is valued at $700,000 and they presently have about $500,000 on their mortgage.
Bob is a builder in Qld and has really been struggling due to the fact that he hurt his back. He owes $150,000 in overdue accounts to a particular hardware outlet who have actually been very patient with Bob and are aware of his situation.