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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.

Any time people worry about Bankruptcy, they fret about just how it will affect their day-to-day lives, and if they will be able to retain their home, vehicle, tools, and other important belongings.

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Among the ways that we can work out this out is by using the bankruptcy means test. It is something that we take our clients through to demonstrate to them just how they may or may not be affected, and what Bankruptcy will mean to them.

Personal and household items

Your valuables are always going to be a key aspect of concern with Bankruptcy in Gosford because there is often an irrational worry that someone will come along to your property to swipe all your stuff away, retrieve your couch, the television, even the coffee machine. But this is never ever going to hold true with pure insolvency because typically they don’t care about these belongings. There are a couple of interesting exceptions although with Bankruptcy and belongings so if you have individual worries about this make certain that you get a bit of support initially or get in touch with us here at Bankruptcy Experts Gosford on 1300 795 575.

Tools.

With Bankruptcy you might be impacted if you have expensive tools. The guidelines explain that you may keep tools of trade up to a limit of $3,700. Having said that keep in mind that this is based upon ‘current cost’ 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 just how much you would expect them to be valued at, or how much you could obtain for them if you had to sell them. But overall, the government doesn’t want personal bankruptcy to become a barrier to you doing your job, so they do not want to deny you access to your tools. It is quite a great part of Bankruptcy, but sometimes can be confusing. So when it relates to tools of trade, you really don’t need to stress simply contact us here at Bankruptcy Experts Gosford for some advice.

Cars

Individuals are constantly worried about how Bankruptcy will affect their motor vehicle. So the guideline is that you can keep one car or motorcycle up to the value of $7,600.

This takes into account present value, as well as the equity. What does this mean? Well, equity deals with the sum of money you have actually put into the car, and just how much is on a car loan. If you have bought a car for $10,000 without a loan, then the car can likely be sold for that quantity, and $10,000 could be raised to pay off your bankruptcy liabilities. On the other hand, if you got a vehicle loan for that amount instead then there would be no advantage to selling your car.

How do you value your car? Simplest method is to just have a chat to a used car dealer and inquire just how much they might provide you for it– that will certainly present you a rough idea about how your motor vehicle will be impacted by this Bankruptcy process. At that point you just need to take into consideration the value of your auto loan or financing plan, and whether you are below or over the $7,600 threshold.

If your car is worth greater than these threshold quantities get some help, at Bankruptcy Experts Gosford we assist people work through their choices when it relates to cars.

The Family Property

Similar to with Bankruptcy and vehicles, the approach that will be taken to your home will certainly depend on equity. If there is no equity in your home, then there certainly is no use in forcing you to sell it. If there is no funds to be earned by taking the home from you, then they are seldom going to bother. For instance if you own a house worth $400,000 and you owe the bank $400,000 then more than likely you will have the chance to maintain your home after insolvency.

The worst part about all this though is that going bankrupt does not think about emotions or excuses– you will not just be able to always keep your automobile or residence because you ‘need it’ or considering that you have a powerful emotional attachment. Bankruptcy may be cruel, but that is exactly why you need to ensure you speak with the right people. Do not jeopardize your family home by presuming or hoping you will have the capacity to keep it post-bankruptcy because you need to dwell somewhere.

If you are stressed over your house or any other aspect of this Bankruptcy Means Test, then call us at Bankruptcy Experts Gosford on 1300 795 575 if you would like to know more about Bankruptcy and Houses or anything to do with Bankruptcy. We are here to truly support you. Visit our website for a lot more information, www.bankruptcyexpertsgosford.com.au.

We provide a Free- No Commitment Consultation so call us today 1300 795 575.

By | 2017-11-16T01:48:29+00:00 January 10th, 2017|Article, Bankruptcy, Blog|0 Comments

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