Any time individuals worry about Bankruptcy, they fret about just how it will affect their day-to-day lives, and if they will be able to retain their home, 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 demonstrate to them just how they may or may not be impacted, and what Bankruptcy will mean to them.
Personal and household items
Your belongings are always going to be a crucial area of concern with Bankruptcy in Mackay because there is normally an illogical concern that someone will come along to your home to snatch all your stuff away, retrieve your couch, television, even the coffee machine. But this is never ever going to be the case with pure insolvency because often they don’t care about these items. There are a few intriguing exemptions although with Bankruptcy and belongings so if you have distinct concerns about this make sure that you get some guidance initially or call us here at Bankruptcy Experts Mackay on 1300 795 575.
With Bankruptcy you may be affected if you have pricey tools. The guidelines specify 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 ago, they are likely to be worth far less nowadays. So it is worth taking into consideration how much you would expect them to be worth, or how much you could obtain for all of them if you needed to sell them. But overall, the government does not want insolvency to be a barrier to you working, so they do not desire to deny you access to your equipment. It is quite a great component of Bankruptcy, but sometimes could be complicated. So when it relates to tools of trade, you do not have to worry simply contact us here at Bankruptcy Experts Mackay for some suggestions.
People are constantly worried about how Bankruptcy will affect their vehicle. So the rule is that you can keep one vehicle or motorcycle up to the market value of $7,600.
This takes into consideration present value, and also the equity. What does this mean? Well, equity deals with the amount of money you have actually put into the automobile, and how much is on a 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 got a car loan for that amount instead then there would be no benefit to selling off your car.
How do you value your car? Easiest way is to just have a chat to a used car dealer and ask just how much they would give you for it– that will certainly present you a rough idea regarding how your car will be affected by this Bankruptcy process. At that point you just have to think about the value of your auto loan or financing plan, and whether you are under or above the $7,600 threshold.
If your car is worth greater than these threshold quantities get some support, at Bankruptcy Experts Mackay we assist people work through their options when it relates to cars.
The Family Home
Just like with Bankruptcy and cars, the approach that will be taken to your home will depend on equity. In case there is no equity in your home, then there certainly is no purpose in forcing you to sell it. If there is absolutely no funds to be made by taking the home 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 bank $400,000 then more than likely you will have the ability to retain your home after bankruptcy.
The worst part about all this though is that going bankrupt does not take into consideration emotions or justifications– you will not just have the ability to manage to keep your automobile or residence because you ‘need it’ or considering that you have a strong emotional attachment. Bankruptcy may be cruel, but that is exactly why you should ensure you speak to the right people. Do not risk your family home by assuming or wishing you will have the capacity to keep it post-bankruptcy just because you need to live somewhere.
If you are worried over your home or any other aspect of this Bankruptcy Means Test, then call us at Bankruptcy Experts Mackay on 1300 795 575 if you want 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.bankruptcyexpertsmackay.com.au.
We offer a Free- No Commitment Consultation so get in touch with us today 1300 795 575.