What can I maintain when I’m Bankrupt – The bankruptcy means test.
Any time individuals stress over Bankruptcy, they worry about how it will impact their day-to-day lives, and whether they will be able to retain their house, vehicle, tools, and other important belongings.
One of the ways that we can estimate this out is by utilizing the insolvency means test. It is something that we take our clients through to show them just how they may or may not be affected, and what Bankruptcy will mean to them.
Personal and household items
Your possessions are always going to be a crucial aspect of concern with Bankruptcy in Bunbury because there is often an irrational worry that someone will come along to your house to swipe all your stuff away, repossess your couch, television, even the coffee machine. However this is never going to hold true with pure bankruptcy since often they do not care about these possessions. There are a couple of interesting exemptions though with Bankruptcy and belongings so if you have distinct concerns about this make sure that you get a bit of advice first or call us here at Bankruptcy Experts Bunbury on 1300 795 575.
With Bankruptcy you might be affected if you have high priced tools. The guidelines state that you may retain tools of trade up to a limit of $3,700. Having said that bear in mind that this is based upon ‘current cost’ so if you purchased your tools for $8,000 5 years ago, they are most likely to be worth far less nowadays. So it is worth considering what amount you would expect them to be worth, or how much you could obtain for all of them if you had to sell them. But as a whole, the government does not want insolvency to be a barrier to you doing your job, so they do not desire to deny you access to your equipment. It is quite a great part of Bankruptcy, but sometimes might be complicated. Therefore when it relates to tools of trade, you really don’t need to stress simply call us here at Bankruptcy Experts Bunbury for some suggestions.
Individuals are constantly troubled about just how Bankruptcy will affect their car. So the guideline is that you can keep one car or motorcycle up to the market value of $7,600.
This takes into account current value, as well as the equity. What does this mean? Well, equity deals with the amount of money you have essentially put into the automobile, and how much is on a car loan. If you have bought a car for $10,000 without a loan, then the car can likely be sold for that quantity, and $10,000 can be raised to pay off your bankruptcy debts. However, if you had a vehicle loan for that amount instead then there would be no benefits to selling off your motor vehicle.
How do you value your car? Simplest way is to just have a chat to a used car dealer and ask how much they would offer you for it– that will present you a rough idea about how your motor vehicle will be affected by this Bankruptcy process. At that point you just need to take into consideration the value of your auto loan or financing plan, and whether you are below or over the $7,600 threshold.
If your car is worth greater than these threshold amounts get some help, at Bankruptcy Experts Bunbury we guide individuals work through their choices when it relates to cars.
The Family Property
Much like with Bankruptcy and cars, the approach that will be taken to your house will be dependent upon equity. In case there is no equity in your home, then there is no use in forcing you to sell it. If there is absolutely no funds to be earned by taking the house off you, then they are almost never going to bother. As an example if you own a home worth $400,000 and you owe the financial institution $400,000 then more than likely you will have the ability to keep your house after insolvency.
The worst part about all this though is that insolvency does not think about feelings or excuses– you will not simply be able to always keep your vehicle or house because you ‘need it’ or considering that you have a powerful emotional attachment. Bankruptcy may be cruel, but that is why you will need to make sure you speak with the right people. Don’t jeopardize your family home by assuming or wishing you will have the ability to keep it post-bankruptcy because you have to dwell somewhere.
If you are anxious over your house or any other component of this Bankruptcy Means Test, then call us at Bankruptcy Experts Bunbury on 1300 795 575 if you wish to know more about Bankruptcy and Houses or almost anything to do with Bankruptcy. We are here to truly assist you. Visit our website for much more information, www.bankruptcyexpertsbunbury.com.au.
We provide a Free- No Commitment Consultation so contact us today 1300 795 575.