House Has $30k or More in Equity
Surrendering the House to the Bank.
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 presently have about $500,000 on their mortgage.
Bob is a builder in NSW and has really been struggling due to the fact that he hurt his back. He owes $150,000 in overdue accounts to a particular hardware store who have actually been very 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?
Let us examine under what circumstance your house could be tied up for more than the three year minimum bankruptcy period. Let us say that when Bob and Sue declared bankruptcy they decided that they wished to try and keep their Maitland home after bankruptcy. At the time they declared bankruptcy the house was worth $700,000 and they still owed the bank the full $700,000.