What can I maintain when I’m Bankrupt – The bankruptcy means test.

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What can I maintain when I’m Bankrupt – The bankruptcy means test.

Any time individuals worry about Bankruptcy, they fret about how it will impact their day-to-day lives, and whether they will be able to keep their home, car, tools, and other important belongings.

One of the ways that we can work out this out is by using the bankruptcy means test. It is something which we take our clients through to present to them just how they may or may not be affected, and what Bankruptcy will mean to them.

Personal and household items

Your valuables are always going to be a crucial area of concern with Bankruptcy in Shepparton since there is usually an illogical worry that someone will arrive to your house to take all your stuff away, repossess your couch, television, even the coffee machine. However this is never ever going to be the case with pure bankruptcy since typically they don’t care about these items. There are a few interesting exceptions though with Bankruptcy and belongings so if you have individual concerns about this make certain that you get a bit of guidance initially or get in touch with us here at Bankruptcy Experts Shepparton on 1300 795 575.

Tools.

With Bankruptcy you could be affected if you have costly tools. The rules explain that you may keep tools of trade up to a limit of $3,700. Having said that bear in mind that this is based upon ‘current cost’ and so if you purchased your tools for $8,000 5 years ago, they are most likely to be worth far less today. So it is worth taking into consideration how much you would expect them to be worth, or how much you could obtain for them if you needed to sell them. But overall, the government doesn’t want insolvency to become a barrier to you working, so they don’t want to deny you accessibility to your tools. It is quite a good part of Bankruptcy, but sometimes could be complicated. So when it relates to tools of trade, you do not need to worry just call us here at Bankruptcy Experts Shepparton for some advice.

Motor vehicles

People are always worried about how Bankruptcy will impact their car. So the guideline is that you can easily retain one car or motorcycle 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 amount of money you have effectively put into the vehicle, and how much is on a car loan. If you have purchased a car for $10,000 without having a loan, then the car can potentially be sold for that quantity, and $10,000 could be raised to pay off your bankruptcy debts. On the other hand, if you got a vehicle loan for that quantity instead then there would be no benefit to selling your vehicle.

How do you value your car? Easiest way is to simply have a chat to a second hand car dealer and ask just how much they would give you for it– that will provide you a rough idea about how your vehicle will be affected by this Bankruptcy method. At that point you just have to consider the worth of your car loan or financing plan, and whether you are under or above the $7,600 threshold.

If your car is worth more than these threshold levels get some help, at Bankruptcy Experts Shepparton we guide individuals work through their choices when it relates to cars.

The Family Home

Just like with Bankruptcy and vehicles, the approach that can be taken to your home will certainly depend on equity. If there is no equity in the house, then there certainly is no use in forcing you to sell it. If there is no funds to be made by taking the home from you, then they are hardly ever 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 have the chance to keep your house after insolvency.

The worst part about all of this though is that insolvency does not think about emotions or justifications– you will not simply be able to manage to keep your automobile or home because you ‘need it’ or because you have a strong emotional attachment. Bankruptcy can be cruel, but that is exactly why you will need to make sure you speak with the right people. Do not risk your family home by assuming or hoping you will have the ability to keep it post-bankruptcy because you have to live somewhere.

If you are stressed out over your house or any other part of this Bankruptcy Means Test, then call us at Bankruptcy Experts Shepparton 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.bankruptcyexpertsshepparton.com.au.

We offer a Free- No Commitment Consultation so call us today 1300 795 575.

By | 2017-10-10T06:34:52+00:00 January 10th, 2017|Bankrupt, Liquidation|0 Comments

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