What can I keep when I’m Bankrupt – The bankruptcy means test.
Whenever individuals stress over Bankruptcy, they worry about just how it will impact their day-to-day lives, and if they will be able to keep their house, car, tools, and other essential possessions.
One of the ways that we can figure this out is by utilizing the bankruptcy means test. It is something that we take our clients through to show them how they may or may not be impacted, and what Bankruptcy will signify to them.
Personal and household items
Your valuables are always going to be a crucial area of concern with Bankruptcy in Ipswich since there is normally an irrational concern that someone will come out to your property to take all your stuff away, repossess your couch, the television, even the coffee machine. However this is never going to be the case with pure insolvency because often they do not care about these belongings. There are a few intriguing exceptions though with Bankruptcy and belongings so if you have specific worries about this make sure that you get a bit of guidance first or contact us here at Bankruptcy Experts Ipswich on 1300 795 575.
With Bankruptcy you might be affected if you have high priced tools. The rules explain that you may keep tools of trade up to a limit of $3,700. However remember that this is based upon ‘current cost’ therefore if you purchased your tools for $8,000 5 years before, they are likely to be worth far less nowadays. So it is worth taking into consideration what amount you would expect them to be worth, or how much you could receive for them if you had to sell them. But overall, the government does not want insolvency to be a barrier to you doing your job, so they don’t desire to refuse you access to your tools. It is quite a great part of Bankruptcy, but sometimes can be confusing. So when it relates to tools of trade, you do not have to worry simply call us here at Bankruptcy Experts Ipswich for some suggestions.
Individuals are constantly 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, and also the equity. What does this mean? Well, equity deals with the amount of money you have actually put into the vehicle, 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 potentially be sold for that quantity, and $10,000 can be raised to pay off your bankruptcy liabilities. On the other hand, if you got a vehicle loan for that quantity instead then there would be no benefits to selling off your car.
How do you value your car? Simplest way is to just have a chat to a used car dealer and ask just how much they would offer you for it– that will certainly provide you a rough idea about how your car will be impacted by this Bankruptcy procedure. After that you just need to consider the value of your car loan or financing plan, and whether you are under or over the $7,600 threshold.
If your car is worth greater than these threshold quantities get some support, at Bankruptcy Experts Ipswich we help people work through their choices when it relates to cars.
The Family Property
Just like with Bankruptcy and motor vehicles, the approach that can be taken to your residential property will certainly depend on equity. In case there is no equity in the house, then there is no use in forcing you to sell it. If there is zero funds to be earned by taking the home off you, then they are seldom going to bother. As an example if you own a house worth $400,000 and you owe the bank $400,000 then more than likely you will have the chance to retain your house after insolvency.
The worst part about all of this though is that going bankrupt does not take into consideration feelings or excuses– you will not merely have the ability to keep your vehicle or home because you ‘need it’ or because you have a strong emotional attachment. Bankruptcy may be harsh, but that is exactly why you need to make sure you speak with the right people. Don’t jeopardize your family home by presuming or hoping you will have the capacity to keep it post-bankruptcy just because you need to live somewhere.
If you are stressed over your home or any other aspect of this Bankruptcy Means Test, then call us at Bankruptcy Experts Ipswich 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 truly assist you. Visit our website for a lot more information, www.bankruptcyexpertsipswich.com.au.
We provide a Free- No Commitment Consultation so call us today 1300 795 575.