Whenever individuals stress over Bankruptcy, they fret about how it will affect their day-to-day lives, and whether they will be able to keep their house, car, tools, and other essential possessions.
One of the ways that we can estimate this out is by utilizing the bankruptcy means test. It is something that we take our clients through to present to them exactly how they may or may not be impacted, and what Bankruptcy will signify to them.
Personal and household items
Your belongings are always going to be a crucial aspect of concern with Bankruptcy in Rockhampton as there is normally an irrational concern that someone will come along to your house to swipe all your stuff away, retrieve your couch, the television, even the coffee machine. However this is never ever going to be the case with pure bankruptcy because typically they do not care about these valuables. There are a few interesting exceptions although with Bankruptcy and belongings so if you have individual concerns about this make sure that you get a bit of advice first or get in touch with us here at Bankruptcy Experts Rockhampton on 1300 795 575.
With Bankruptcy you might be impacted if you have costly tools. The guidelines specify that you may retain tools of trade up to a limit of $3,700. Having said that bear in mind that this is founded upon ‘current cost’ therefore if you bought your tools for $8,000 5 years ago, they are likely to be worth far less today. So it is worth thinking about just how much you would expect them to be worth, or how much you could get for them if you needed to sell them. But overall, the government doesn’t want insolvency to be a barrier to you working, so they do not want to deny you accessibility to your tools. It is quite a good component of Bankruptcy, but sometimes could be confusing. So when it relates to tools of trade, you don’t have to worry just call us here at Bankruptcy Experts Rockhampton for some suggestions.
Individuals are always troubled about how Bankruptcy will impact their car. So the rule is that you can easily retain one vehicle or motorcycle up to the value of $7,600.
This takes into account current value, and also the equity. What does this mean? Well, equity deals with the sum of money you have actually put into the car, 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 likely be sold for that amount, and $10,000 could be raised to pay off your bankruptcy liabilities. On the other hand, if you got a car loan for that quantity instead then there would be no benefits to selling your car.
How do you value your car? Simplest way is to simply have a chat to a second hand car dealership and ask just how much they might offer you for it– that will give you a rough idea regarding how your motor vehicle will be affected 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 over the $7,600 threshold.
If your car is worth greater than these threshold quantities get some help, at Bankruptcy Experts Rockhampton we assist individuals work through their choices when it relates to cars.
The Family Home
Just like with Bankruptcy and vehicles, the approach that will be taken to your house will certainly be dependent upon equity. If there is no equity in the house, then there is no point in forcing you to sell it. If there is zero funds to be made by taking the house off you, then they are seldom going to bother. As an example if you possess a home worth $400,000 and you owe the financial institution $400,000 then more than likely you will have the chance to keep your home after bankruptcy.
The worst part about all this though is that going bankrupt does not take into consideration emotions or justifications– you will not merely have the ability to manage to keep your car or residence because you ‘need it’ or because you have a strong emotional attachment. Bankruptcy can be cruel, but that is why you should ensure you talk to the right people. Don’t jeopardize your family home by assuming or wishing you will have the capacity to maintain it post-bankruptcy because you need to dwell somewhere.
If you are stressed over your home or any other aspect of this Bankruptcy Means Test, then call us at Bankruptcy Experts Rockhampton on 1300 795 575 if you want to know more about Bankruptcy and Houses or almost anything to do with Bankruptcy. We are here to truly support you. Visit our website for a lot more information, www.bankruptcyexpertsrockhampton.com.au.
We offer a Free- No Commitment Consultation so contact us today 1300 795 575.