Whenever people stress over Bankruptcy, they worry about how it will impact their day-to-day lives, and whether they will be able to keep their home, vehicle, tools, and other essential belongings.
Among the ways that we can figure 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 possessions are always going to be a crucial area of concern with Bankruptcy in Dandenong as there is normally an irrational concern that someone will come out to your house to swipe all your stuff away, repossess your couch, television, even the coffee machine. However this is never going to be the case with pure bankruptcy since typically they do not care about these possessions. There are a few interesting exceptions though with Bankruptcy and belongings so if you have individual concerns about this make certain that you get a bit of support initially or call us here at Bankruptcy Experts Dandenong on 1300 795 575.
With Bankruptcy you might be affected if you have pricey tools. The rules state that you may retain tools of trade up to a limit of $3,700. Having said that remember that this is founded upon ‘current cost’ therefore if you bought your tools for $8,000 5 years before, they are likely to be worth far less today. So it is worth considering just how much you would anticipate them to be valued at, or how much you could obtain for them if you needed to sell them. But overall, the government does not want bankruptcy to become a barrier to you doing your job, so they do not desire to deny you accessibility to your tools. It is quite a great part of Bankruptcy, but sometimes might be complex. So when it relates to tools of trade, you do not have to stress simply call us here at Bankruptcy Experts Dandenong for some advice.
Individuals are constantly concerned about how Bankruptcy will affect their motor vehicle. So the guideline is that you can easily retain one vehicle or motorbike up to the market value of $7,600.
This takes into consideration present value, as well as the equity. What does this mean? Well, equity deals with the amount of money you have actually put into the vehicle, and just how much is on a car loan. If you have bought a car for $10,000 without a loan, then the car can possibly be sold for that quantity, and $10,000 could be raised to pay off your bankruptcy debts. However, if you had 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? Easiest way is to just have a chat to a used car dealership and inquire just how much they would offer you for it– that will certainly give you a rough idea regarding how your vehicle will be impacted by this Bankruptcy method. At that point you just need to think about the value of your auto loan or financing plan, and whether you are below or over the $7,600 threshold.
If your car is worth more than these threshold amounts get some assistance, at Bankruptcy Experts Dandenong we help people work through their alternatives when it relates to cars.
The Family Home
Similar to with Bankruptcy and vehicles, the approach that can be taken to your house will certainly depend on equity. If there is no equity in your home, then there is no purpose in forcing you to sell it. If there is absolutely no 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 chance to maintain your home after insolvency.
The worst part about all this though is that bankruptcy does not take into consideration emotions or justifications– you will not simply have the ability to manage to keep your automobile or home because you ‘need it’ or because you have a powerful emotional attachment. Bankruptcy may be harsh, but that is why you will need to make sure you speak with the right people. Do not jeopardize your family home by presuming or wishing you will have the capacity to keep it post-bankruptcy because you have to dwell somewhere.
If you are worried over your home or any other aspect of this Bankruptcy Means Test, then call us at Bankruptcy Experts Dandenong 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 help you. Visit our website for a lot more information, www.bankruptcyexpertsdandenong.com.au.
We provide a Free- No Commitment Consultation so call us today 1300 795 575.