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

Home/Bankrupt, Blog/What can I keep when I’m Bankrupt – The bankruptcy means test.

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

Whenever individuals stress over Bankruptcy, they fret about just how it will affect their day-to-day lives, and if they will be able to keep their house, car, tools, and other essential belongings.

One of the ways that we can work out this out is by utilizing the insolvency means test. It is something which we take our clients through to demonstrate to them 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 key aspect of concern with Bankruptcy in Shellharbour as there is usually an illogical fear that someone will arrive to your home to snatch all your stuff away, retrieve your couch, television, even the coffee machine. But this is never going to be the case with pure insolvency because typically they do not care about these possessions. There are a few intriguing exemptions though with Bankruptcy and belongings so if you have distinct worries about this make certain that you get some advice first or contact us here at Bankruptcy Experts Shellharbour on 1300 795 575.

With Bankruptcy you could be affected if you have high priced tools. The guidelines explain that you may retain tools of trade up to a limit of $3,700. Having said that keep in mind that this is based upon ‘current cost’ therefore if you purchased your tools for $8,000 5 years before, they are most likely to be worth far less right now. So it is worth taking into consideration how much you would anticipate them to be worth, or how much you could receive for all of 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 do not desire to refuse you accessibility to your tools. It is quite a great part of Bankruptcy, but sometimes can be complicated. Therefore when it relates to tools of trade, you really don’t need to stress just contact us here at Bankruptcy Experts Shellharbour for some advice.

Motor vehicles
People are always worried about how Bankruptcy will impact their motor vehicle. So the rule is that you can easily retain one car or motorbike 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 sum of money you have actually put into the automobile, and just how much is on a car loan. If you have purchased a car for $10,000 without a loan, then the car can potentially be sold for that quantity, 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 advantage to selling off your car.
How do you value your car? Simplest way is to simply have a chat to a second hand car dealership and inquire just how much they might offer you for it– that will present you a rough idea about how your vehicle will be affected by this Bankruptcy procedure. Then you just need to think about the worth 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 quantities get some assistance, at Bankruptcy Experts Shellharbour we guide people work through their options when it relates to cars.

The Family Home
Just like with Bankruptcy and cars, the approach that can be taken to your home will be dependent upon equity. When there is no equity in your house, then there is no use in forcing you to sell it. If there is zero funds to be earned by taking the home from you, then they are rarely going to bother. As an example if you own a home worth $400,000 and you owe the bank $400,000 then more than likely you will have the ability to retain your home after insolvency.
The worst part about all of this though is that going bankrupt does not take into account emotions or justifications– you will not just be able to manage to keep your automobile or home because you ‘need it’ or considering that you have a powerful emotional attachment. Bankruptcy may be harsh, but that is the reason why you will need to ensure you speak with the right people. Do not risk your family home by presuming or hoping you will have the capacity to maintain it post-bankruptcy because you need to live somewhere.

If you are anxious over your home or any other part of this Bankruptcy Means Test, then call us at Bankruptcy Experts Shellharbour 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.bankruptcyexpertsshellharbour.com.au.

We provide a Free- No Commitment Consultation so contact us today 1300 795 575.

By | 2020-08-17T00:42:56+00:00 January 10th, 2017|Bankrupt, Blog|0 Comments

About the Author: