House Has $30k or More in Equity
Bob and Sue have made the very difficult decision to declare bankruptcy, the biggest concern is their family house 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 The Northern Territory, what will happen to their home when they declare 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 decide to surrender their house to the bank. The very first thing we at Bankruptcy Experts 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 is a builder in the NT and has really been struggling since he hurt his back. He owes $150,000 in unpaid accounts to a particular hardware store who have been very patient with Bob and understand his situation.