House Has $30k or More in Equity
So, in Queensland, what will happen to their home when they file 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 does not make any difference the principle is the same.
Surrendering the House to the Bank.
So, Bob and Sue choose to surrender their house to the bank. The very first thing we at Bankruptcy Advice Sunshine Coast 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 home. This means the bank does not need 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 assist them in selling it.
A Question of Caveats
Bob is a builder in Qld and has really been struggling due to the fact that he injured his back. He owes $150,000 in overdue accounts to a particular hardware outlet who have actually been very patient with Bob and are aware of his situation. However, they are just not able to wait any more, so to make certain that they get their payment for the account they have placed a caveat over Bob and Sue’s property.