Whenever individuals worry about Bankruptcy, they worry about how it will affect their day-to-day lives, and if they will be able to retain their house, vehicle, tools, and other important possessions.
Among the ways that we can figure this out is by using the insolvency means test. It is something that we take our clients through to demonstrate to them how they may or may not be impacted, and what Bankruptcy will signify to them.
Personal and household items
Your possessions are always going to be a crucial aspect of concern with Bankruptcy in Hervey Bay since there is often an unreasonable fear that someone will arrive to your home to snatch all your stuff away, retrieve your couch, television, even the coffee machine. However this is never going to be the case with pure bankruptcy since often they do not care about these belongings. There are a few intriguing exceptions although with Bankruptcy and belongings so if you have distinct concerns about this make certain that you get a bit of guidance initially or contact us here at Bankruptcy Experts Hervey Bay on 1300 795 575.
With Bankruptcy you may be impacted if you have costly tools. The rules explain that you may retain tools of trade up to a limit of $3,700. However bear 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 right now. So it is worth taking into consideration how much you would anticipate them to be valued at, or how much you could receive for them if you had to sell them. But as a whole, the government doesn’t want personal bankruptcy to be a barrier to you working, so they do not desire to deny you accessibility to your equipment. It is quite a great part of Bankruptcy, but sometimes might be complex. Therefore when it relates to tools of trade, you do not need to stress just call us here at Bankruptcy Experts Hervey Bay for some suggestions.
Individuals are always concerned about how Bankruptcy will impact their car. So the rule is that you can easily keep one vehicle or motorbike up to the value of $7,600.
This takes into consideration current value, and also the equity. What does this mean? Well, equity deals with the sum of money you have effectively put into the automobile, and how much is on a 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 could be raised to pay off your bankruptcy debts. However, if you had a car loan for that quantity instead then there would be no benefits to selling your motor vehicle.
How do you value your car? Simplest way is to simply have a chat to a used car dealership and inquire how much they would provide you for it– that will certainly present you a rough idea regarding how your motor vehicle will be affected by this Bankruptcy process. After that you just have to think about the value of your auto loan or financing plan, and whether you are below or above the $7,600 threshold.
If your car is worth more than these threshold levels get some support, at Bankruptcy Experts Hervey Bay we guide people work through their alternatives when it relates to cars.
The Family Property
Similar to with Bankruptcy and vehicles, the approach that will be taken to your residential property will be dependent upon equity. In case there is no equity in your home, then there certainly is no purpose in forcing you to sell it. If there is no money to be made by taking the home off you, then they are hardly ever going to bother. For example if you own a home worth $400,000 and you owe the financial institution $400,000 then more than likely you will have the ability to retain your house after bankruptcy.
The worst part about all of this though is that bankruptcy does not take into account emotions or excuses– you will not merely have the ability to manage 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 why you will need to ensure you speak with the right people. Do not 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 stressed out over your house or any other aspect of this Bankruptcy Means Test, then call us at Bankruptcy Experts Hervey Bay 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 really support you. Visit our website for a lot more information, www.bankruptcyexpertsherveybay.com.au.
We offer a Free- No Commitment Consultation so get in touch with us today 1300 795 575.