Whenever people 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 important possessions.
One of the ways that we can work out this out is by using the insolvency means test. It is something which 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 Whitsundays as there is often an unreasonable fear that someone will come along to your house to swipe all your stuff away, retrieve your couch, television, even the coffee machine. But this is never ever going to hold true with pure insolvency since typically they don’t care about these items. There are a few interesting exceptions though with Bankruptcy and belongings so if you have distinct worries about this make certain that you get some guidance initially or get in touch with us here at Bankruptcy Experts Whitsundays on 1300 795 575.
With Bankruptcy you may be affected if you have costly tools. The rules specify 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’ therefore if you bought your tools for $8,000 5 years before, they are most likely to be worth far less nowadays. So it is worth thinking about just how much you would anticipate 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 insolvency to be a barrier to you working, so they do not want to deny you access to your equipment. It is quite a great component of Bankruptcy, but sometimes can be complicated. So when it relates to tools of trade, you do not need to stress just contact us here at Bankruptcy Experts Whitsundays for some advice.
People are always troubled about just how Bankruptcy will impact their car. So the rule is that you can retain one car or motorcycle up to the value of $7,600.
This takes into account current 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 car loan. If you have bought a car for $10,000 without having a loan, then the car can potentially 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 quantity instead then there would be no advantage to selling your motor vehicle.
How do you value your car? Easiest way is to simply have a chat to a second hand car dealer and ask how much they might offer you for it– that will certainly give you a rough idea about how your vehicle will be impacted by this Bankruptcy process. Then you just need to take into consideration the value of your vehicle 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 assistance, at Bankruptcy Experts Whitsundays we guide people work through their choices when it relates to cars.
The Family Home
Much like with Bankruptcy and vehicles, the approach that will be taken to your house will 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 no funds to be made by taking the home off you, then they are rarely 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 have the chance to keep your home after insolvency.
The worst part about all of this though is that personal bankruptcy does not take into account emotions or justifications– you will not just be able to manage to keep your automobile or residence because you ‘need it’ or because you have a strong emotional attachment. Bankruptcy may be cruel, but that is why you need to make sure you talk to the right people. Do not jeopardize your family home by presuming or hoping you will have the capacity to keep it post-bankruptcy just because you have to live somewhere.
If you are anxious over your home or any other component of this Bankruptcy Means Test, then call us at Bankruptcy Experts Whitsundays on 1300 795 575 if you wish to know more about Bankruptcy and Houses or almost anything to do with Bankruptcy. We are here to really assist you. Visit our website for even more information, www.bankruptcyexpertswhitsundays.com.au.
We provide a Free- No Commitment Consultation so call us today 1300 795 575.