Whenever people stress over Bankruptcy, they fret about just how it will impact their day-to-day lives, and whether they will be able to retain their house, vehicle, tools, and other important belongings.
Among the ways that we can estimate this out is by using the insolvency means test. It is something that we take our clients through to show them exactly 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 crucial area of concern with Bankruptcy in Cassowary Coast as there is usually an illogical fear that someone will arrive to your house to swipe all your stuff away, retrieve your couch, television, even the coffee machine. However this is never going to hold true with pure bankruptcy since typically they don’t care about these valuables. There are a couple of intriguing exemptions though with Bankruptcy and belongings so if you have individual concerns about this make certain that you get some advice initially or contact us here at Bankruptcy Experts Cassowary Coast on 1300 795 575.
With Bankruptcy you could be impacted if you have high priced tools. The guidelines state 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 purchased your tools for $8,000 5 years ago, they are likely to be worth far less these days. So it is worth thinking about just how much you would expect them to be valued at, or how much you could receive for them if you needed to sell them. But overall, the government does not want personal bankruptcy to become a barrier to you working, so they don’t desire to refuse you access to your tools. It is quite a great component of Bankruptcy, but sometimes can be complex. Therefore when it relates to tools of trade, you don’t have to stress simply contact us here at Bankruptcy Experts Cassowary Coast for some suggestions.
Individuals are constantly troubled about just how Bankruptcy will affect their motor vehicle. So the guideline is that you can retain one car or motorbike up to the 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 actually put into the car, and just how much is on a car loan. If you have purchased a car for $10,000 without having a loan, then the car can possibly be sold for that quantity, and $10,000 can be raised to pay off your bankruptcy debts. However, if you had a car loan for that amount instead then there would be no benefit to selling your motor vehicle.
How do you value your car? Simplest method is to simply have a chat to a used car dealer and ask how much they might give you for it– that will certainly give you a rough idea about how your vehicle will be impacted by this Bankruptcy process. After that you just need to consider 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 amounts get some support, at Bankruptcy Experts Cassowary Coast we assist people work through their possibilities when it relates to cars.
The Family Home
Much like with Bankruptcy and motor vehicles, the approach that can be taken to your residential property will certainly be dependent upon equity. If there is no equity in your home, then there is no use in forcing you to sell it. If there is zero money to be made by taking the home from you, then they are hardly ever going to bother. For instance if you possess a home worth $400,000 and you owe the bank $400,000 then more than likely you will be able to maintain your home after bankruptcy.
The worst part about all this though is that insolvency does not think about emotions or justifications– you will not merely have the ability to keep your vehicle or house because you ‘need it’ or considering that you have a strong emotional attachment. Bankruptcy may be cruel, but that is the reason why you need to make sure you speak with the right people. Don’t risk your family home by presuming or wishing you will have the ability to maintain it post-bankruptcy just because you need to live somewhere.
If you are anxious over your house or any other component of this Bankruptcy Means Test, then call us at Bankruptcy Experts Cassowary Coast 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 support you. Visit our website for much more information, www.bankruptcyexpertscassowarycoast.com.au.
We provide a Free- No Commitment Consultation so contact us today 1300 795 575.