Whenever people worry about Bankruptcy, they think about just how it will impact their day-to-day lives, and if they will be able to retain their home, vehicle, tools, and other important belongings.
One of the ways that we can figure this out is by utilizing the bankruptcy means test. It is something which we take our clients through to demonstrate to them just 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 crucial area of concern with Bankruptcy in Maitland since there is normally an unreasonable concern that someone will arrive to your house to take all your stuff away, repossess your couch, television, even the coffee machine. However this is never going to hold true with pure bankruptcy because typically they don’t care about these belongings. There are a few intriguing exceptions though with Bankruptcy and belongings so if you have distinct concerns about this make sure that you get some guidance initially or call us here at Bankruptcy Experts Maitland on 1300 795 575.
With Bankruptcy you could be impacted if you have costly tools. The guidelines state that you may retain tools of trade up to a limit of $3,700. However remember that this is based upon ‘current cost’ and so if you bought your tools for $8,000 5 years ago, they are most likely to be worth far less these days. So it is worth considering how much you would expect them to be worth, or how much you could obtain for them if you had to sell them. But as a whole, the government doesn’t want bankruptcy to be a barrier to you doing your job, so they don’t want to deny you access to your equipment. It is quite a good component of Bankruptcy, but sometimes might be complicated. Therefore when it relates to tools of trade, you really don’t have to worry just call us here at Bankruptcy Experts Maitland for some suggestions.
Individuals are constantly worried about how Bankruptcy will impact their vehicle. So the guideline is that you can easily keep one car or motorbike up to the market 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 car, and how much is on a loan. If you have purchased a car for $10,000 without 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 got a vehicle loan for that quantity instead then there would be no advantage to selling off your car.
How do you value your car? Easiest method is to simply have a chat to a used car dealer and inquire how much they might provide you for it– that will present 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 car loan or financing plan, and whether you are below or over the $7,600 threshold.
If your car is worth more than these threshold quantities get some help, at Bankruptcy Experts Maitland we guide people work through their alternatives when it relates to cars.
The Family Property
Similar to with Bankruptcy and motor vehicles, the approach that will be taken to your home will certainly be dependent upon equity. When there is no equity in your house, then there certainly is no purpose in forcing you to sell it. If there is no funds to be made by taking the house from you, then they are hardly ever going to bother. For instance if you possess a home worth $400,000 and you owe the financial institution $400,000 then more than likely you will be able to maintain your house after insolvency.
The worst part about all of this though is that going bankrupt does not think about emotions or justifications– you will not just be able to always 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 will need to ensure you talk to the right people. Don’t risk your family home by presuming or wishing you will have the ability to keep it post-bankruptcy because you have to dwell somewhere.
If you are worried over your home or any other part of this Bankruptcy Means Test, then call us at Bankruptcy Experts Maitland on 1300 795 575 if you wish to know more about Bankruptcy and Houses or anything to do with Bankruptcy. We are here to truly help you. Visit our website for much more information, www.bankruptcyexpertsmaitland.com.au.
We provide a Free- No Commitment Consultation so get in touch with us today 1300 795 575.