What can I keep when I’m Bankrupt – The bankruptcy means test.
01
January
2017

Whenever individuals worry about Bankruptcy, they think about just how it will impact their day-to-day lives, and if they will be able to retain their house, vehicle, tools, and other important possessions.

One of the ways that we can work out this out is by utilizing the insolvency means test. It is something that we take our clients through to present to them exactly 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 crucial aspect of concern with Bankruptcy in Toowoomba because there is normally an irrational fear that someone will come out to your house to snatch all your stuff away, repossess your couch, the television, even the coffee machine. However this is never ever going to hold true with pure bankruptcy since often they do not care about these valuables. 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 contact us here at Bankruptcy Experts Toowoomba on 1300 795 575.

 

Tools.

With Bankruptcy you could be affected if you have expensive tools. The rules 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 likely to be worth far less right now. So it is worth considering what amount you would expect 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 personal bankruptcy to become a barrier to you doing your job, so they don’t want to refuse you access to your equipment. It is quite a great component of Bankruptcy, but sometimes can be complex. Therefore when it relates to tools of trade, you don’t have to worry just contact us here at Bankruptcy Experts Toowoomba for some advice.

 

Cars

Individuals are constantly worried about just how Bankruptcy will impact their motor vehicle. So the guideline is that you can retain one car or motorbike up to the market 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 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 amount instead then there would be no benefits to selling your vehicle.

How do you value your car? Easiest method is to just have a chat to a second hand car dealership and inquire how much they would give you for it– that will certainly provide you a rough idea about how your motor vehicle will be affected by this Bankruptcy procedure. At that point you just have to consider the worth of your car loan or financing plan, and whether you are under or above the $7,600 threshold.

 

If your car is worth greater than these threshold levels get some assistance, at Bankruptcy Experts Toowoomba we assist people work through their alternatives when it relates to cars.

 

The Family Property

Similar to with Bankruptcy and cars, the approach that will be taken to your house will certainly depend on equity. In case there is no equity in the house, then there certainly is no use in forcing you to sell it. If there is absolutely no money to be made by taking the house off you, then they are hardly ever going to bother. For example 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 maintain your house after insolvency.

The worst part about all of this though is that insolvency does not take into account emotions or justifications– you will not merely have the ability to keep your car or residence because you ‘need it’ or considering that you have a powerful emotional attachment. Bankruptcy can be harsh, but that is the reason why you will need to ensure you talk to the right people. Don’t risk your family home by presuming or hoping you will have the capability to keep it post-bankruptcy because you need to dwell somewhere.

 

If you are stressed over your house or any other part of this Bankruptcy Means Test, then call us at Bankruptcy Experts Toowoomba 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 truly support you. Visit our website for a lot more information, www.bankruptcyexpertstoowoomba.com.au.

 

We offer a Free- No Commitment Consultation so get in touch with us today 1300 795 575.

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