What can I keep when I’m Bankrupt – The bankruptcy means test.
Any time people stress over Bankruptcy, they worry about how it will affect their day-to-day lives, and whether they will be able to retain their home, vehicle, tools, and other essential belongings.
Among 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 demonstrate 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 key area of concern with Bankruptcy in Wollongong as there is normally an irrational concern that someone will arrive to your house to swipe all your stuff away, repossess your couch, the television, even the coffee machine. But this is never going to hold true with pure insolvency because typically they don’t care about these belongings. There are a couple of interesting exemptions though with Bankruptcy and belongings so if you have specific concerns about this make certain that you get a bit of guidance initially or contact us here at Bankruptcy Experts Wollongong on 1300 795 575.
With Bankruptcy you might be impacted if you have costly tools. The rules explain that you may retain tools of trade up to a limit of $3,700. Having said that keep in mind that this is based upon ‘current cost’ therefore if you bought your tools for $8,000 5 years before, they are most likely to be worth far less right now. So it is worth thinking about just how much you would anticipate them to be worth, or how much you could receive for all of them if you had to sell them. But as a whole, the government does not want insolvency to become a barrier to you doing your job, so they do not desire to refuse you access to your tools. It is quite a good part of Bankruptcy, but sometimes could be complicated. So when it relates to tools of trade, you don’t need to stress simply contact us here at Bankruptcy Experts Wollongong for some advice.
Individuals are constantly worried about how Bankruptcy will affect their car. So the rule is that you can easily keep one car or motorcycle up to the market value of $7,600.
This takes into consideration current value, and also the equity. What does this mean? Well, equity deals with the amount of money you have actually put into the automobile, and how much is on a loan. If you have bought a car for $10,000 without having a loan, then the car can likely be sold for that amount, and $10,000 can be raised to pay off your bankruptcy liabilities. However, if you had a vehicle loan for that quantity instead then there would be no benefit to selling off your car.
How do you value your car? Simplest method is to just have a chat to a used car dealer and ask how much they would provide you for it– that will give you a rough idea regarding how your vehicle will be affected by this Bankruptcy method. After that you just have to consider the worth of your vehicle loan or financing plan, and whether you are below or above the $7,600 threshold.
If your car is worth greater than these threshold levels get some help, at Bankruptcy Experts Wollongong we help individuals work through their possibilities when it relates to cars.
The Family Property
Similar to with Bankruptcy and motor vehicles, the approach that can be taken to your house will certainly depend on equity. In case there is no equity in the house, then there certainly is no purpose in forcing you to sell it. If there is absolutely no money to be earned by taking the home off you, then they are rarely going to bother. For instance if you own a house worth $400,000 and you owe the financial institution $400,000 then more than likely you will have the chance to maintain your house after insolvency.
The worst part about all of this though is that personal bankruptcy does not think about feelings or excuses– you will not merely be able to always keep your vehicle or home because you ‘need it’ or considering that you have a strong emotional attachment. Bankruptcy may be cruel, but that is exactly why you will need to ensure you talk to the right people. Do not jeopardize your family home by presuming or hoping you will have the capability to keep it post-bankruptcy just because you have to dwell somewhere.
If you are stressed out over your home or any other component of this Bankruptcy Means Test, then call us at Bankruptcy Experts Wollongong 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 even more information, www.bankruptcyexpertswollongong.com.au.
We offer a Free- No Commitment Consultation so get in touch with us today 1300 795 575.