Any time people stress over Bankruptcy, they worry about just how it will impact their day-to-day lives, and whether they will be able to retain their home, vehicle, tools, and other important possessions.
One of the ways that we can figure 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 belongings are always going to be a crucial area of concern with Bankruptcy in Coffs Harbour as there is often an irrational concern that someone will come along to your home to take all your stuff away, repossess your couch, the television, even the coffee machine. But this is never going to hold true with pure insolvency because often they do not care about these possessions. There are a few interesting exemptions although 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 Coffs Harbour on 1300 795 575.
With Bankruptcy you may be impacted if you have costly tools. The rules explain that you may retain tools of trade up to a limit of $3,700. However keep in mind that this is based upon ‘current cost’ and 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 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 overall, the government doesn’t want personal bankruptcy to become a barrier to you working, so they do not want 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 really don’t have to worry simply contact us here at Bankruptcy Experts Coffs Harbour for some advice.
People are constantly troubled about how Bankruptcy will impact their vehicle. So the guideline is that you can retain one car or motorbike 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 sum of money you have effectively put into the automobile, 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 potentially be sold for that quantity, and $10,000 could be raised to pay off your bankruptcy liabilities. However, if you had a vehicle loan for that amount instead then there would be no advantage to selling off your car.
How do you value your car? Easiest way is to simply have a chat to a used car dealership and ask just how much they might provide you for it– that will give you a rough idea about how your vehicle will be affected by this Bankruptcy method. After that you just have to take into consideration the worth of your vehicle loan or financing plan, and whether you are below or over the $7,600 threshold.
If your car is worth greater than these threshold levels get some support, at Bankruptcy Experts Coffs Harbour we help people work through their options when it relates to cars.
The Family Home
Much like with Bankruptcy and cars, the approach that will be taken to your home will be dependent upon equity. When there is no equity in the house, then there certainly is no purpose in forcing you to sell it. If there is absolutely no funds to be earned by taking the house from you, then they are rarely going to bother. As an example if you possess a home worth $400,000 and you owe the bank $400,000 then more than likely you will be able to retain your house after insolvency.
The worst part about all this though is that bankruptcy does not take into consideration feelings or justifications– you will not just be able to manage to keep your automobile or house because you ‘need it’ or considering that you have a powerful emotional attachment. Bankruptcy may be harsh, but that is the reason why you should make sure you speak with the right people. Don’t risk your family home by assuming or hoping you will have the capacity to keep it post-bankruptcy just 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 Coffs Harbour 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.bankruptcyexpertscoffsharbour.com.au.
We provide a Free- No Commitment Consultation so get in touch with us today 1300 795 575.