Whenever people stress over Bankruptcy, they fret about how it will affect 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 estimate this out is by using 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 affected, and what Bankruptcy will signify to them.
Personal and household items
Your belongings are always going to be a crucial area of concern with Bankruptcy in Parramatta because there is often an irrational fear that someone will come out to your home to snatch all your stuff away, retrieve your couch, television, even the coffee machine. But this is never going to be the case with pure insolvency since typically they don’t care about these possessions. There are a few interesting exemptions though with Bankruptcy and belongings so if you have distinct worries about this make certain that you get some support first or get in touch with us here at Bankruptcy Experts Parramatta on 1300 795 575.
With Bankruptcy you could be affected if you have costly tools. The guidelines specify 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’ so if you bought your tools for $8,000 5 years before, they are most likely to be worth far less these days. So it is worth considering just how much you would expect them to be valued at, or how much you could receive for them if you needed to sell them. But as a whole, the government doesn’t want insolvency to become a barrier to you working, so they don’t desire to refuse you accessibility to your equipment. It is quite a great component of Bankruptcy, but sometimes might be complicated. So when it relates to tools of trade, you don’t have to stress simply call us here at Bankruptcy Experts Parramatta for some advice.
People are constantly concerned about just how Bankruptcy will impact their car. So the guideline is that you can keep one vehicle 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 actually put into the vehicle, 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 possibly be sold for that amount, and $10,000 could be raised to pay off your bankruptcy debts. Having said that, if you had a vehicle loan for that quantity instead then there would be no advantage to selling off your vehicle.
How do you value your car? Simplest method is to just have a chat to a used car dealership and inquire just how much they might provide you for it– that will certainly present you a rough idea regarding how your vehicle will be affected by this Bankruptcy process. At that point you just need to consider the value 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 assistance, at Bankruptcy Experts Parramatta we guide individuals work through their options when it relates to cars.
The Family Home
Similar to with Bankruptcy and vehicles, the approach that can be taken to your house will depend on equity. If there is no equity in your house, then there is no use in forcing you to sell it. If there is no money to be earned by taking the home off you, then they are almost never going to bother. For instance if you possess a home worth $400,000 and you owe the financial institution $400,000 then more than likely you will have the ability to retain your house after insolvency.
The worst part about all this though is that insolvency does not take into account feelings or justifications– you will not just have the ability to always keep your car or house because you ‘need it’ or considering that you have a strong emotional attachment. Bankruptcy can be cruel, but that is the reason why you should ensure you talk to the right people. Do not jeopardize your family home by assuming or hoping you will have the capability to maintain it post-bankruptcy just because you have to dwell somewhere.
If you are stressed out over your house or any other aspect of this Bankruptcy Means Test, then call us at Bankruptcy Experts Parramatta on 1300 795 575 if you want to know more about Bankruptcy and Houses or anything to do with Bankruptcy. We are here to really assist you. Visit our website for much more information, www.bankruptcyexpertsparramatta.com.au.
We offer a Free- No Commitment Consultation so get in touch with us today 1300 795 575.