House Has $30k or More in Equity
Surrendering the House to the Bank.
Bob and Sue have come to the tough decision to file 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 Fremantle 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 house is valued at $700,000 and they presently have about $500,000 on their mortgage.
Bob is a builder in WA and has really been struggling since he injured his back. He owes $150,000 in overdue accounts to a particular hardware outlet who have been really patient with Bob and are aware of 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?
What If I Decide to Hand the House Back to the Bank When I Go Bankrupt, How Long Do I Have Before I Am Required to Leave?
I Bought a House With Compensation Money, Is That Money Safe If I Go Bankrupt?
Bob and Sue have been living in their family house for many years. About five years ago Bob had a major accident at work, he received a large compensation payout from his employer which he put into the house mortgage. The question is, if Bob decides to declare bankruptcy is that compensation money safe or will he lose it?