Any time people stress over Bankruptcy, they worry about how it will impact their day-to-day lives, and whether they will be able to keep their home, vehicle, tools, and other important belongings.
Among 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 how they may or may not be affected, and what Bankruptcy will signify to them.
Personal and household items
Your belongings are always going to be a key area of concern with Bankruptcy in Port Stephens because there is often an illogical fear that someone will come along to your home to snatch all your stuff away, retrieve your couch, the television, even the coffee machine. But this is never going to hold true with pure insolvency because often they do not care about these items. There are a couple of interesting exemptions although with Bankruptcy and belongings so if you have particular concerns about this make sure that you get a bit of guidance first or call us here at Bankruptcy Experts Port Stephens on 1300 795 575.
With Bankruptcy you may be impacted if you have costly tools. The guidelines explain that you may keep tools of trade up to a limit of $3,700. Having said that remember that this is founded upon ‘current cost’ therefore if you purchased your tools for $8,000 5 years ago, they are most likely to be worth far less nowadays. So it is worth considering what amount 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 does not want personal bankruptcy to become a barrier to you doing your job, so they don’t want to refuse you accessibility to your tools. It is quite a good part of Bankruptcy, but sometimes might be confusing. So when it relates to tools of trade, you don’t have to worry just contact us here at Bankruptcy Experts Port Stephens for some guidance.
People are always worried about how Bankruptcy will affect their car. So the guideline is that you can retain one car or motorbike up to the market value of $7,600.
This takes into consideration present value, as well as the equity. What does this mean? Well, equity deals with the sum of money you have essentially put into the vehicle, and how much is on a loan. If you have purchased a car for $10,000 without a loan, then the car can possibly be sold for that quantity, and $10,000 can be raised to pay off your bankruptcy debts. Having said that, 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? Simplest method is to simply 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 about how your car will be affected by this Bankruptcy procedure. At that point you just have to take into consideration the worth of your auto loan or financing plan, and whether you are under or over the $7,600 threshold.
If your car is worth greater than these threshold levels get some help, at Bankruptcy Experts Port Stephens we assist individuals work through their choices when it relates to cars.
The Family Property
Much like with Bankruptcy and motor vehicles, the approach that can be taken to your residential property will certainly depend on equity. When there is no equity in the house, then there is no purpose in forcing you to sell it. If there is absolutely no funds to be earned by taking the home off you, then they are almost never 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 have the ability to keep your house after insolvency.
The worst part about all this though is that insolvency does not think about emotions or excuses– you will not simply be able to keep your automobile or residence because you ‘need it’ or considering that you have a powerful emotional attachment. Bankruptcy can be harsh, but that is the reason why you will need to make sure you speak with the right people. Do not jeopardize your family home by presuming or wishing you will have the ability to keep it post-bankruptcy because you have to live somewhere.
If you are anxious over your home or any other aspect of this Bankruptcy Means Test, then call us at Bankruptcy Experts Port Stephens 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 really assist you. Visit our website for a lot more information, www.bankruptcyexpertsportstephens.com.au.
We offer a Free- No Commitment Consultation so get in touch with us today 1300 795 575.