Whenever people worry about Bankruptcy, they worry about just how it will impact their day-to-day lives, and whether they will be able to retain their house, vehicle, tools, and other important belongings.
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 how they may or may not be impacted, and what Bankruptcy will mean to them.
Personal and household items
Your possessions are always going to be a crucial area of concern with Bankruptcy in Gympie as there is normally an illogical worry that someone will come along to your property to take all your stuff away, retrieve your couch, the television, even the coffee machine. But this is never ever going to hold true with pure bankruptcy since often they do not care about these valuables. There are a couple of intriguing exemptions though with Bankruptcy and belongings so if you have individual worries about this make certain that you get a bit of guidance initially or call us here at Bankruptcy Experts Gympie on 1300 795 575.
With Bankruptcy you may be affected if you have expensive tools. The rules state that you may keep tools of trade up to a limit of $3,700. Having said that bear in mind that this is founded upon ‘current cost’ so if you bought your tools for $8,000 5 years before, they are likely to be worth far less these days. So it is worth thinking about just how much you would expect them to be valued at, or how much you could get for them if you had 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 desire to refuse you accessibility to your equipment. It is quite a good part of Bankruptcy, but sometimes can be complicated. So when it relates to tools of trade, you do not need to worry simply call us here at Bankruptcy Experts Gympie for some suggestions.
Individuals are always worried about how Bankruptcy will impact their vehicle. So the rule is that you can easily retain one car or motorcycle up to the market value of $7,600.
This takes into account present value, as well as the equity. What does this mean? Well, equity deals with the amount of money you have effectively put into the automobile, and how much is on a car loan. If you have purchased a car for $10,000 without a loan, then the car can possibly 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 amount instead then there would be no advantage to selling off your motor vehicle.
How do you value your car? Simplest method is to simply have a chat to a second hand car dealer and inquire just how much they would provide you for it– that will present you a rough idea about how your car will be impacted by this Bankruptcy process. At that point you just have to take into consideration the worth of your vehicle loan or financing plan, and whether you are under or above the $7,600 threshold.
If your car is worth greater than these threshold amounts get some assistance, at Bankruptcy Experts Gympie we assist people work through their options when it relates to cars.
The Family Home
Much like with Bankruptcy and motor vehicles, the approach that can be taken to your home will certainly depend on equity. If there is no equity in the house, then there certainly is no use in forcing you to sell it. If there is zero money to be made by taking the home from you, then they are rarely going to bother. For example if you own a house worth $400,000 and you owe the bank $400,000 then more than likely you will be able to retain your house after bankruptcy.
The worst part about all of this though is that going bankrupt does not take into consideration feelings or excuses– you will not merely be able to always keep your vehicle or home because you ‘need it’ or considering that you have a strong emotional attachment. Bankruptcy can be cruel, but that is exactly why you will need to ensure you speak with the right people. Don’t risk your family home by presuming or wishing you will have the capability to maintain it post-bankruptcy because you have to live somewhere.
If you are stressed over your house or any other aspect of this Bankruptcy Means Test, then call us at Bankruptcy Experts Gympie 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 even more information, www.bankruptcyexpertsgympie.com.au.
We provide a Free- No Commitment Consultation so contact us today 1300 795 575.