|January 9, 2017||Comments Closed|
Any time individuals stress over Bankruptcy, they worry about how it will impact their day-to-day lives, and whether they will be able to retain their home, vehicle, tools, and other essential possessions.
Among the ways that we can work out this out is by utilizing the insolvency 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 signify to them.
Personal and household items
Your valuables are always going to be a crucial aspect of concern with Bankruptcy in Bendigo since there is usually an illogical fear that someone will come along to your house to swipe all your stuff away, repossess your couch, the television, even the coffee machine. However this is never going to hold true with pure insolvency since typically they don’t care about these possessions. There are a few intriguing exceptions though with Bankruptcy and belongings so if you have individual concerns about this make sure that you get some advice initially or get in touch with us here at Bankruptcy Experts Bendigo on 1300 818 575.
With Bankruptcy you could be affected if you have pricey tools. The rules explain that you may keep tools of trade up to a limit of $3,700. However remember that this is founded upon ‘current cost’ therefore if you purchased your tools for $8,000 5 years before, they are likely to be worth far less right now. So it is worth thinking about what amount you would expect them to be worth, or how much you could get for all of them if you needed to sell them. But as a whole, 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 great part of Bankruptcy, but sometimes might be complex. Therefore when it relates to tools of trade, you don’t need to worry just contact us here at Bankruptcy Experts Bendigo for some suggestions.
Individuals are constantly concerned about just how Bankruptcy will affect their vehicle. So the guideline is that you can easily retain one vehicle or motorbike up to the market value of $7,600.
This takes into consideration current value, as well as the equity. What does this mean? Well, equity deals with the amount of money you have essentially put into the automobile, and how much is on a car loan. If you have bought a car for $10,000 without having a loan, then the car can possibly be sold for that amount, and $10,000 can be raised to pay off your bankruptcy liabilities. On the other hand, if you had a car loan for that quantity instead then there would be no benefit to selling your vehicle.
How do you value your car? Simplest method is to simply have a chat to a second hand car dealership and ask how much they would provide you for it– that will certainly provide you a rough idea regarding how your motor vehicle will be impacted by this Bankruptcy procedure. After that you just have to consider the worth of your vehicle loan or financing plan, and whether you are below or above the $7,600 threshold.
If your car is worth greater than these threshold amounts get some support, at Bankruptcy Experts Bendigo we help people 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 home will depend on equity. When there is no equity in your home, then there certainly is no purpose in forcing you to sell it. If there is no funds to be earned by taking the house off you, then they are seldom going to bother. For example if you own a home worth $400,000 and you owe the bank $400,000 then more than likely you will be able to retain your residential property after insolvency.
The worst part about all this though is that bankruptcy does not take into consideration feelings or justifications– you will not merely have the ability to keep your automobile or home because you ‘need it’ or because you have a strong emotional attachment. Bankruptcy may be cruel, but that is the reason why you will need to ensure you speak to the right people. Do not risk your family home by presuming or hoping you will have the capability to maintain it post-bankruptcy because you need to live somewhere.
If you are worried over your home or any other part of this Bankruptcy Means Test, then call us at Bankruptcy Experts Bendigo on 1300 818 575 if you wish 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.bankruptcyexpertsbendigo.com.au.
We provide a Free- No Commitment Consultation so get in touch with us today 1300 818 575.