House Has $30k or More in Equity
Surrendering the House to the Bank.
Bob and Sue have come to the difficult decision to declare 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 choose to surrender their home to the bank. The very first thing we at Bankruptcy Experts Gosford 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 home.
A Question of Caveats
Bob and Sue have owned a property for many years, have worked really hard and have $200,000 equity in their home. Their house is valued at $700,000 and they presently have about $500,000 on their mortgage.
Bob is a builder in NSW and has really been struggling since 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 understand his situation.
When The House is in Your Partners Name and They Don’t Need to Go Bankrupt.
Why Would You Go Bankrupt If You Had Equity In Your House?
Bob and Sue have owned their Gosford home for years and have actually worked really hard to build up some equity in the property. Their home is presently valued at $700,000 and they owe the bank $600,000 giving them $100,000 equity. In this case study Bob and Sue have a combined debt of $180,000, far greater than the $100,000 equity they have in their house.
But I Have Mortgage Insurance?
I Have Heard My Property Can Be Tied Up for Eight Years or More When I Go Bankrupt?
Let us take a look at under what circumstance your house could be tied up for more than the 3 year minimum bankruptcy period. Let us say that when Bob and Sue declared bankruptcy they decided that they wanted to try and keep their Gosford house after bankruptcy. At the time they declared bankruptcy the house was worth $700,000 and they still owed the bank the full $700,000.