What can I keep when I’m Bankrupt – The bankruptcy means test.
Any time people worry about Bankruptcy, they think about how it will impact their day-to-day lives, and if they will be able to keep their home, car, tools, and other important belongings.
One of the ways that we can estimate this out is by using the bankruptcy means test. It is something which we take our clients through to present to them how they may or may not be impacted, and what Bankruptcy will signify to them.
Personal and household items
Your belongings are always going to be a crucial aspect of concern with Bankruptcy in Tamworth because there is usually an irrational concern that someone will arrive to your home to take all your stuff away, repossess your couch, the television, even the coffee machine. However this is never going to hold true with pure insolvency because typically they don’t care about these belongings. There are a couple of intriguing exceptions though with Bankruptcy and belongings so if you have particular worries about this make certain that you get some advice initially or get in touch with us here at Bankruptcy Experts Tamworth on 1300 795 575.
With Bankruptcy you might be impacted if you have pricey tools. The rules explain that you may retain tools of trade up to a limit of $3,700. However keep in mind that this is founded upon ‘current cost’ therefore if you purchased your tools for $8,000 5 years ago, they are likely to be worth far less nowadays. So it is worth considering just how much you would anticipate them to be worth, or how much you could get for them if you needed to sell them. But overall, the government does not want bankruptcy to be a barrier to you working, so they don’t want to deny you access to your equipment. It is quite a good component of Bankruptcy, but sometimes could be complicated. Therefore when it relates to tools of trade, you do not have to worry simply call us here at Bankruptcy Experts Tamworth for some guidance.
Individuals are always troubled about how Bankruptcy will affect their motor vehicle. So the rule is that you can retain one car or motorcycle up to the value of $7,600.
This takes into account current value, and also the equity. What does this mean? Well, equity deals with the amount of money you have actually put into the vehicle, and how much is on a loan. If you have bought a car for $10,000 without having a loan, then the car can possibly be sold for that quantity, and $10,000 can be raised to pay off your bankruptcy debts. On the other hand, if you got a vehicle loan for that amount instead then there would be no advantage to selling your motor vehicle.
How do you value your car? Simplest method is to simply have a chat to a used car dealership and ask how much they would offer you for it– that will give you a rough idea regarding how your vehicle will be impacted by this Bankruptcy method. Then you just need to consider the value of your vehicle loan or financing plan, and whether you are below or over the $7,600 threshold.
If your car is worth more than these threshold amounts get some support, at Bankruptcy Experts Tamworth we help people work through their options when it relates to cars.
The Family Home
Similar to with Bankruptcy and motor vehicles, the approach that can be taken to your home will certainly be dependent upon equity. When there is no equity in your house, then there certainly is no use in forcing you to sell it. If there is zero funds to be made by taking the house from you, then they are almost never going to bother. As an example if you possess a house worth $400,000 and you owe the financial institution $400,000 then more than likely you will have the chance to retain your house after insolvency.
The worst part about all of this though is that going bankrupt does not think about emotions or excuses– you will not merely be able to always keep your automobile or home because you ‘need it’ or considering that you have a powerful emotional attachment. Bankruptcy may be harsh, but that is exactly why you need to ensure 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 need to dwell somewhere.
If you are anxious over your home or any other component of this Bankruptcy Means Test, then call us at Bankruptcy Experts Tamworth on 1300 795 575 if you would like to know more about Bankruptcy and Houses or almost anything to do with Bankruptcy. We are here to really assist you. Visit our website for even more information, www.bankruptcyexpertstamworth.com.au.
We offer a Free- No Commitment Consultation so contact us today 1300 795 575.