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.

Whenever individuals stress over Bankruptcy, they worry about just how it will affect their day-to-day lives, and whether they will be able to retain their home, car, tools, and other important 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 present to them exactly how they may or may not be affected, and what Bankruptcy will signify to them.

Personal and household items

Your possessions are always going to be a key aspect of concern with Bankruptcy in Taree since there is often an irrational worry that someone will come out to your house to snatch all your stuff away, repossess your couch, the television, even the coffee machine. But this is never ever going to hold true with pure insolvency since often they don’t care about these items. There are a few interesting exceptions although with Bankruptcy and belongings so if you have specific worries about this make certain that you get some guidance initially or call us here at Bankruptcy Experts Taree on 1300 795 575.

Tools

With Bankruptcy you could be impacted if you have expensive tools. The rules 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 ago, they are likely to be worth far less these days. So it is worth taking into consideration what amount you would expect them to be worth, or how much you could obtain for all of them if you needed to sell them. But overall, the government doesn’t want insolvency to be a barrier to you doing your job, so they don’t want to refuse you accessibility 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 don’t need to worry simply call us here at Bankruptcy Experts Taree for some suggestions.

Motor vehicles

Individuals are constantly troubled about just how Bankruptcy will impact their motor vehicle. So the rule is that you can easily keep one vehicle 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 just how much is on a car loan. If you have purchased a car for $10,000 without having a loan, then the car can potentially be sold for that quantity, and $10,000 could 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 off your motor vehicle.

How do you value your car? Simplest method is to simply have a chat to a used car dealership and ask how much they might give you for it– that will certainly provide you a rough idea regarding how your car will be impacted by this Bankruptcy method. At that point you just need to think about 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 greater than these threshold amounts get some assistance, at Bankruptcy Experts Taree we guide people work through their possibilities when it relates to cars.

The Family Property

Just like with Bankruptcy and motor vehicles, the approach that can be taken to your house will 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 zero money to be made by taking the house from you, then they are hardly ever going to bother. For instance if you own a home worth $400,000 and you owe the financial institution $400,000 then more than likely you will have the chance to keep your home after bankruptcy.

The worst part about all of this though is that insolvency does not think about feelings or excuses– you will not merely have the ability to keep your vehicle or home because you ‘need it’ or considering that you have a powerful emotional attachment. Bankruptcy can be cruel, but that is exactly why you should ensure you speak with the right people. Do not jeopardize your family home by assuming or hoping you will have the ability to maintain it post-bankruptcy because you need to live somewhere.

If you are stressed over your house or any other aspect of this Bankruptcy Means Test, then call us at Bankruptcy Experts Taree on 1300 795 575 if you want to know more about Bankruptcy and Houses or anything to do with Bankruptcy. We are here to really help you. Visit our website for even more information, www.bankruptcyexpertstaree.com.au.

 

We offer a Free- No Commitment Consultation so get in touch with us today 1300 795 575.

By | 2018-07-04T00:11:08+00:00 January 10th, 2017|Bankruptcy, Liquidation|0 Comments

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