House Has $30k or More in Equity
Surrendering the House to the Bank.
So, Bob and Sue choose to surrender their house to the bank. The very first thing we at Bankruptcy Experts Wollongong 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 is a builder in NSW and has really been having a hard time due to the fact that he hurt his back. He owes $150,000 in unpaid accounts to a particular hardware store 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?
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 examine 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 Wollongong house after bankruptcy. At the time they went bankrupt the house was worth $700,000 and they still owed the bank the entire $700,000.