House Has $30k or More in Equity
So, in New South Wales, 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.
So, Bob and Sue decide to surrender their house to the bank. The very first thing we at Bankruptcy Port Stephens 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. This means the bank does not have to pursue legal action to have them removed from the house.
A Question of Caveats
Bob is a builder in NSW and has really been having a hard time 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.