House Has $30k or More in Equity
Bob and Sue have made the really tough decision to declare bankruptcy, the biggest concern is their family home 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 Queensland, what will happen to their house 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 does not make any difference the principle is the same.
Surrendering the House to the Bank.
Bob and Sue have come to the hard decision to apply 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 choose to surrender their home to the bank. The very first thing we at Bankruptcy Experts Emerald 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 house. Their house is valued at $700,000 and they currently have about $500,000 on their mortgage.
Bob is a builder in Qld and has really been struggling 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 really patient with Bob and understand his situation.
When The House is in Your Partners Name and They Don’t Need to Go Bankrupt.
Bob is seriously considering bankruptcy and feels like he has no choice. He has serious concerns due to the fact that his wife Sue owns the Emerald house that they reside in and he is very concerned about what will happen to that property should he apply for Bankruptcy. In this case study we explore what happens to the property when the house is purely in Sue’s name and Bob’s name is neither on the title nor on the home mortgage.
Why Would You Go Bankrupt If You Had Equity In Your House?
Bob and Sue have owned their Emerald house for several years and have worked really hard to build up some equity in the property. Their house is presently valued at $700,000 and they owe the bank $600,000 giving them $100,000 equity. In this case study Bob and Sue have a combined debt of $180,000, far greater than the $100,000 equity they have in their home.
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?
Bob and Sue have struck a few financial obstacles and have decided to go bankrupt. They cannot afford to keep up the mortgage payments and so have decided to walk away from their family home. The question is, once bankrupt how long have Bob and Sue got before they will be required to leave the property?
I Bought a House With Compensation Money, Is That Money Safe If I Go Bankrupt?
Bob and Sue have been living in their family home for many years. About five years ago Bob had a major accident at work, he got a big compensation payout from his employer which he put into the house mortgage. The question is, if Bob makes a decision to apply for bankruptcy is that compensation money safe or will he lose it?