Any time people worry about Bankruptcy, they fret about how it will affect their day-to-day lives, and whether they will be able to keep their house, vehicle, tools, and other essential belongings.
One of the ways that we can estimate this out is by using the insolvency means test. It is something that we take our clients through to demonstrate to them exactly how they may or may not be affected, and what Bankruptcy will signify to them.
Personal and household items
Your valuables are always going to be a key area of concern with Bankruptcy in Brisbane since there is usually an irrational worry that someone will come out to your property to swipe all your stuff away, retrieve your couch, the television, even the coffee machine. But this is never going to be the case with pure insolvency because often they don’t care about these belongings. There are a few interesting exceptions although with Bankruptcy and belongings so if you have specific concerns about this make sure that you get a bit of advice first or contact us here at Bankruptcy Experts on 1300 818 575.
With Bankruptcy you could be impacted if you have pricey tools. The rules state that you may retain tools of trade up to a limit of $3,700. Having said that remember that this is founded upon ‘current cost’ so if you purchased your tools for $8,000 5 years before, they are likely to be worth far less nowadays. So it is worth thinking about what amount you would expect them to be worth, or how much you could get for them if you had to sell them. But as a whole, the government does not want bankruptcy to become a barrier to you working, so they don’t desire to deny you access to your tools. It is quite a great component of Bankruptcy, but sometimes might be confusing. So when it relates to tools of trade, you do not have to stress simply call us here at Bankruptcy Experts for some suggestions.
Individuals are constantly worried about just how Bankruptcy will impact their vehicle. So the guideline is that you can retain one vehicle or motorbike up to the market value of $7,600.
This takes into consideration current value, as well as the equity. What does this mean? Well, equity deals with the amount of money you have actually put into the car, and how much is on a loan. If you have purchased a car for $10,000 without having a loan, then the car can potentially be sold for that amount, and $10,000 could be raised to pay off your bankruptcy liabilities. Having said that, if you got a car loan for that amount instead then there would be no benefit to selling off your motor vehicle.
How do you value your car? Simplest way is to simply have a chat to a second hand car dealer and inquire just how much they would give you for it– that will certainly provide you a rough idea about how your vehicle will be impacted by this Bankruptcy procedure. After that you just need to think about the value of your car loan or financing plan, and whether you are below or above the $7,600 threshold.
If your car is worth greater than these threshold quantities get some help, at Bankruptcy Experts we assist individuals work through their choices when it relates to cars.
The Family Home
Just like 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 point in forcing you to sell it. If there is zero funds to be earned by taking the home from you, then they are almost never going to bother. For instance if you possess a house worth $400,000 and you owe the bank $400,000 then more than likely you will be able to keep your residential property after insolvency.
The worst part about all this though is that bankruptcy does not think about emotions or excuses– you will not simply be able to manage to keep your car or house because you ‘need it’ or considering that you have a strong emotional attachment. Bankruptcy may be cruel, but that is the reason why you will need to ensure you speak to the right people. Do not jeopardize your family home by presuming or wishing you will have the capability to keep it post-bankruptcy just because you have to live somewhere.
If you are worried over your home or any other part of this Bankruptcy Means Test, then call us at Bankruptcy Experts on 1300 818 575 if you wish to know more about Bankruptcy and Houses or anything to do with Bankruptcy. We are here to really help you. Visit our website for much more information, www.freshstartsolutions.com.au/bankruptcy-brisbane.
We offer a Free- No Commitment Consultation so call us today 1300 818 575.