Whenever people stress over Bankruptcy, they fret about how it will impact their day-to-day lives, and if they will be able to retain their house, car, tools, and other important belongings.
Among the ways that we can work out this out is by using the insolvency means test. It is something that we take our clients through to show 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 aspect of concern with Bankruptcy in Tweed Coast since there is normally an illogical fear that someone will arrive to your property to snatch all your stuff away, retrieve your couch, television, even the coffee machine. But this is never going to be the case with pure bankruptcy since typically they don’t care about these belongings. There are a few interesting exemptions although with Bankruptcy and belongings so if you have individual worries about this make certain that you get some advice first or get in touch with us here at Bankruptcy Experts Tweed Coast on 1300 795 575.
With Bankruptcy you might be impacted if you have pricey tools. The guidelines 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’ and so if you purchased your tools for $8,000 5 years ago, they are likely to be worth far less nowadays. 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 bankruptcy to be a barrier to you working, so they do not want to deny you access to your tools. It is quite a good part of Bankruptcy, but sometimes could be confusing. Therefore when it relates to tools of trade, you don’t need to stress simply call us here at Bankruptcy Experts Tweed Coast for some advice.
Individuals are always troubled about how Bankruptcy will impact their car. So the rule is that you can keep one vehicle or motorcycle 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 amount of money you have effectively put into the automobile, and how much is on a car loan. If you have purchased a car for $10,000 without a loan, then the car can potentially be sold for that quantity, and $10,000 can be raised to pay off your bankruptcy debts. However, if you got a vehicle loan for that amount instead then there would be no advantage to selling your vehicle.
How do you value your car? Easiest method is to just have a chat to a second hand car dealer and ask just how much they would provide you for it– that will give you a rough idea regarding how your vehicle will be impacted by this Bankruptcy process. Then you just have to take into consideration the value of your car loan or financing plan, and whether you are under or over the $7,600 threshold.
If your car is worth more than these threshold amounts get some help, at Bankruptcy Experts Tweed Coast we guide individuals work through their choices 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 be dependent upon equity. When there is no equity in your home, then there certainly is no use in forcing you to sell it. If there is zero money to be made by taking the house off you, then they are hardly ever 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 maintain your house after bankruptcy.
The worst part about all this though is that going bankrupt does not take into account emotions or justifications– you will not just be able to keep your vehicle or home because you ‘need it’ or considering that you have a strong emotional attachment. Bankruptcy can be cruel, but that is the reason why you need to make sure you speak to the right people. Don’t risk your family home by assuming or wishing you will have the ability to maintain it post-bankruptcy just because you have to live somewhere.
If you are worried over your house or any other aspect of this Bankruptcy Means Test, then call us at Bankruptcy Experts Tweed Coast on 1300 795 575 if you would like to know more about Bankruptcy and Houses or almost anything to do with Bankruptcy. We are here to truly support you. Visit our website for even more information, Bankruptcy Tweedcoast
We provide a Free- No Commitment Consultation so contact us today 1300 795 575.