House Has $30k or More in Equity
So, in the Northern Territory, what will happen to their home 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 doesn’t make any difference the principle is the same.
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 Tennant Creek would do for them is get them to sign a legal document which resembles a deed of release meaning they have voluntarily surrendered their house.
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 house. Their home is valued at $700,000 and they currently have about $500,000 on their mortgage.