What can I maintain when I’m Bankrupt – The bankruptcy means test.
Any time individuals stress over Bankruptcy, they think about just how it will impact their day-to-day lives, and if they will be able to retain their home, car, tools, and other important possessions.
Among the ways that we can estimate this out is by utilizing the insolvency means test. It is something which we take our clients through to show them exactly how they may or may not be affected, and what Bankruptcy will signify to them.
Personal and household items
Your belongings are always going to be a key area of concern with Bankruptcy in Geelong since there is normally an unreasonable concern that someone will come along to your house to snatch all your stuff away, repossess your couch, the television, even the coffee machine. However this is never going to be the case with pure bankruptcy since often they don’t care about these possessions. There are a couple of intriguing exceptions though with Bankruptcy and belongings so if you have specific concerns about this make sure that you get a bit of support initially or call us here at Bankruptcy Experts Geelong on 1300 795 575.
With Bankruptcy you could be impacted if you have pricey tools. The rules specify that you may keep tools of trade up to a limit of $3,700. However remember that this is based upon ‘current cost’ so if you purchased your tools for $8,000 5 years ago, they are likely to be worth far less today. So it is worth thinking about what amount you would expect them to be valued at, or how much you could receive for them if you needed to sell them. But overall, the government does not want personal bankruptcy to become a barrier to you doing your job, so they don’t want to deny you accessibility to your equipment. It is quite a good component of Bankruptcy, but sometimes could be complicated. So when it relates to tools of trade, you do not have to worry just contact us here at Bankruptcy Experts Geelong for some suggestions.
Individuals are constantly worried about just how Bankruptcy will impact their vehicle. So the rule is that you can keep one vehicle or motorbike up to the market value of $7,600.
This takes into consideration present value, as well as 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 a loan, then the car can potentially be sold for that amount, and $10,000 could be raised to pay off your bankruptcy liabilities. However, if you got a car loan for that quantity instead then there would be no benefit to selling your motor vehicle.
How do you value your car? Easiest method is to simply have a chat to a used car dealership and inquire just how much they might offer you for it– that will certainly provide you a rough idea regarding how your vehicle will be impacted by this Bankruptcy method. Then you just have to consider the value of your car 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 Geelong we guide people work through their choices when it relates to cars.
The Family Property
Similar to with Bankruptcy and cars, the approach that can be taken to your home will certainly be dependent upon equity. If there is no equity in your house, then there is no use in forcing you to sell it. If there is absolutely no funds to be made by taking the home from you, then they are rarely going to bother. For example if you possess a home worth $400,000 and you owe the financial institution $400,000 then more than likely you will have the chance to maintain your residential property after bankruptcy.
The worst part about all this though is that bankruptcy does not think about feelings or excuses– you will not just be able to manage to keep your vehicle or residence because you ‘need it’ or considering that you have a strong emotional attachment. Bankruptcy can be harsh, but that is why you should ensure you speak with the right people. Don’t risk your family home by presuming or wishing you will have the capacity to keep it post-bankruptcy because you have to dwell somewhere.
If you are anxious over your home or any other aspect of this Bankruptcy Means Test, then call us at Bankruptcy Experts Geelong on 1300 795 575 if you want to know more about Bankruptcy and Houses or anything to do with Bankruptcy. We are here to truly help you. Visit our website for a lot more information, www.bankruptcyexpertsgeelong.com.au.
We offer a Free- No Commitment Consultation so contact us today 1300 795 575.