What can I keep when I’m Bankrupt – The bankruptcy means test.

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What can I keep when I’m Bankrupt – The bankruptcy means test.

Any time people worry about Bankruptcy, they worry about how it will impact their day-to-day lives, and if they will be able to retain their house, vehicle, tools, and other essential possessions.

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 show them 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 Wangaratta because there is often an unreasonable fear that someone will come out to your house to snatch all your stuff away, repossess your couch, television, even the coffee machine. However this is never ever going to hold true with pure bankruptcy because often they do not care about these valuables. There are a few interesting exemptions although with Bankruptcy and belongings so if you have distinct concerns about this make certain that you get a bit of guidance initially or get in touch with us here at Bankruptcy Experts Wangaratta on 1300 795 575.

Tools.

With Bankruptcy you may be impacted if you have high priced tools. The guidelines state that you may keep tools of trade up to a limit of $3,700. Having said that remember that this is based upon ‘current cost’ and so if you bought your tools for $8,000 5 years before, they are most likely to be worth far less these days. So it is worth thinking about how much you would anticipate them to be valued at, or how much you could receive for all of them if you needed to sell them. But as a whole, the government doesn’t want insolvency to become a barrier to you doing your job, so they don’t want to refuse you access to your tools. It is quite a great component of Bankruptcy, but sometimes can be confusing. So when it relates to tools of trade, you do not need to worry simply call us here at Bankruptcy Experts Wangaratta for some advice.

Motor vehicles

People are constantly concerned about how Bankruptcy will impact their motor vehicle. So the rule is that you can retain one vehicle 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 sum of money you have actually put into the vehicle, and how much is on a car loan. If you have bought a car for $10,000 without having a loan, then the car can likely be sold for that quantity, and $10,000 can be raised to pay off your bankruptcy liabilities. Having said that, if you had a car loan for that amount instead then there would be no benefits to selling your car.

How do you value your car? Easiest method is to simply have a chat to a used car dealer and inquire just how much they might give you for it– that will certainly give you a rough idea regarding how your vehicle will be affected by this Bankruptcy method. At that point you just need to think about the value of your vehicle loan or financing plan, and whether you are under or above the $7,600 threshold.

If your car is worth more than these threshold amounts get some assistance, at Bankruptcy Experts Wangaratta we help individuals work through their possibilities when it relates to cars.

The Family Home

Just like with Bankruptcy and motor vehicles, the approach that will be taken to your residential property will certainly be dependent upon equity. When there is no equity in the house, then there is no purpose in forcing you to sell it. If there is absolutely no money to be earned by taking the home from you, then they are hardly ever going to bother. As an example if you own a home worth $400,000 and you owe the bank $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 personal bankruptcy does not take into account emotions or excuses– you will not merely have the ability to keep your automobile or residence because you ‘need it’ or considering that you have a strong emotional attachment. Bankruptcy can be harsh, but that is the reason why you should make sure you talk to 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 live somewhere.

If you are stressed over your home or any other aspect of this Bankruptcy Means Test, then call us at Bankruptcy Experts Wangaratta 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 help you. Visit our website for a lot more information, www.bankruptcyexpertswangaratta.com.au.

 

We provide a Free- No Commitment Consultation so call us today 1300 795 575.

By | 2018-07-26T02:48:46+00:00 January 10th, 2017|Bankruptcy, Blog|0 Comments

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