Whenever people stress over Bankruptcy, they worry about how it will affect their day-to-day lives, and if they will be able to keep their house, vehicle, tools, and other essential belongings.
Among the ways that we can figure this out is by utilizing the bankruptcy means test. It is something which we take our clients through to present to them how they may or may not be affected, 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 Port Macquarie because there is often an unreasonable worry that someone will come out to your house to take all your stuff away, repossess your couch, the television, even the coffee machine. But this is never going to be the case with pure insolvency because often they do not care about these valuables. There are a couple of interesting exceptions although with Bankruptcy and belongings so if you have individual worries about this make certain that you get a bit of support initially or contact us here at Bankruptcy Experts Port Macquarie on 1300 795 575.
With Bankruptcy you may be impacted if you have high priced tools. The guidelines state that you may keep tools of trade up to a limit of $3,700. However keep in mind that this is founded upon ‘current cost’ therefore if you bought your tools for $8,000 5 years ago, they are most likely to be worth far less right now. So it is worth thinking about how much 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 doesn’t want personal bankruptcy to become a barrier to you working, so they don’t desire to refuse you access to your tools. It is quite a good part of Bankruptcy, but sometimes can be complex. So when it relates to tools of trade, you don’t need to stress just call us here at Bankruptcy Experts Port Macquarie for some guidance.
Individuals are constantly worried about how Bankruptcy will affect their car. So the rule is that you can easily keep one car or motorcycle up to the value of $7,600.
This takes into consideration present value, as well as the equity. What does this mean? Well, equity deals with the sum of money you have effectively put into the car, and just how much is on a car loan. If you have bought a car for $10,000 without having a loan, then the car can possibly be sold for that quantity, and $10,000 can be raised to pay off your bankruptcy liabilities. However, if you had a car 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 how much they would provide you for it– that will certainly provide you a rough idea about how your car will be affected by this Bankruptcy method. Then you just have to take into consideration the value of your vehicle loan or financing plan, and whether you are under or over the $7,600 threshold.
If your car is worth more than these threshold levels get some help, at Bankruptcy Experts Port Macquarie we help people work through their possibilities when it relates to cars.
The Family Property
Much like with Bankruptcy and vehicles, the approach that can be taken to your house will certainly depend on equity. When there is no equity in the house, then there is no point in forcing you to sell it. If there is absolutely no funds to be earned by taking the house off you, then they are almost never going to bother. As an example if you own a house worth $400,000 and you owe the financial institution $400,000 then more than likely you will have the ability to maintain your residential property after insolvency.
The worst part about all this though is that going bankrupt does not think about feelings or justifications– you will not merely have the ability to manage to keep your vehicle or home 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 speak to the right people. Do not risk your family home by presuming or wishing you will have the ability to maintain it post-bankruptcy just because you need to live somewhere.
If you are stressed over your house or any other part of this Bankruptcy Means Test, then call us at Bankruptcy Experts Port Macquarie 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 assist you. Visit our website for a lot more information, www.bankruptcyexpertsportmacquarie.com.au.
We provide a Free- No Commitment Consultation so contact us today 1300 795 575.