House Has $30k or More in Equity
So, in New South Wales, what will happen to their house when they apply for 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 Lismore 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. This means the bank does not have to pursue legal action to have them removed from the house. Bob and Sue would then vacate the property, although sometimes the bank might ask the residents to remain and live in the property to help them in selling it.
A Question of Caveats
Bob is a builder in NSW and has really been struggling since he hurt his back. He owes $150,000 in overdue accounts to a particular hardware outlet who have been really patient with Bob and understand his situation. However, they are just not able to wait anymore, so to make sure that they get their payment for the account they have placed a caveat over Bob and Sue’s property.