What can I maintain when I’m Bankrupt – The bankruptcy means test.

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What can I maintain when I’m Bankrupt – The bankruptcy means test.

Whenever individuals worry about Bankruptcy, they think about how it will impact their day-to-day lives, and whether they will be able to retain their house, vehicle, tools, and other important possessions.

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 just 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 aspect of concern with Bankruptcy in Sunshine Coast because there is normally an irrational concern that someone will come out to your house to swipe all your stuff away, repossess your couch, the 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 belongings. There are a few intriguing exceptions though with Bankruptcy and belongings so if you have specific worries about this make sure that you get some support first or get in touch with us here at Bankruptcy Experts Sunshine Coast on 1300 795 575.

Tools.

With Bankruptcy you might be impacted if you have expensive tools. The rules explain that you may keep tools of trade up to a limit of $3,700. However remember that this is founded upon ‘current cost’ and so if you purchased your tools for $8,000 5 years before, they are likely to be worth far less today. So it is worth considering how much you would anticipate them to be worth, or how much you could get for all of them if you had to sell them. But overall, the government doesn’t want insolvency to be a barrier to you doing your job, so they do not want to deny you accessibility to your tools. It is quite a great component of Bankruptcy, but sometimes could be confusing. Therefore when it relates to tools of trade, you really don’t have to stress just contact us here at Bankruptcy Experts Sunshine Coast for some guidance.

Cars

Individuals are always worried about just how Bankruptcy will affect their vehicle. So the rule is that you can easily keep one car or motorbike 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 sum of money you have actually put into the vehicle, and how much is on a car loan. If you have bought a car for $10,000 without a loan, then the car can potentially be sold for that amount, and $10,000 can be raised to pay off your bankruptcy liabilities. Having said that, if you got a car loan for that quantity instead then there would be no advantage to selling your car.

How do you value your car? Simplest way is to just have a chat to a second hand car dealer and ask just how much they would give you for it– that will provide you a rough idea about how your car will be affected by this Bankruptcy procedure. At that point you just need to think about the value of your vehicle loan or financing plan, and whether you are under or over the $7,600 threshold.

If your car is worth more than these threshold amounts get some support, at Bankruptcy Experts Sunshine Coast we help people work through their choices when it relates to cars.

The Family Property

Similar to with Bankruptcy and motor vehicles, the approach that will be taken to your house will be dependent upon equity. In case there is no equity in the house, then there certainly is no use in forcing you to sell it. If there is no money to be made by taking the home off you, then they are almost never 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 keep your house after insolvency.

The worst part about all of this though is that personal bankruptcy does not think about emotions or justifications– you will not simply have the ability to keep your automobile or home because you ‘need it’ or considering that you have a powerful emotional attachment. Bankruptcy may be cruel, but that is why you should make sure you talk to the right people. Do not jeopardize your family home by presuming or hoping you will have the capability to keep it post-bankruptcy just because you need to live somewhere.

If you are stressed out over your home or any other aspect of this Bankruptcy Means Test, then call us at Bankruptcy Experts Sunshine Coast on 1300 795 575 if you wish to know more about Bankruptcy and Houses or anything to do with Bankruptcy. We are here to really help you. Visit our website for much more information, www.bankruptcyexpertssunshinecoast.com.au.

We offer a Free- No Commitment Consultation so call us today 1300 795 575.

By | 2017-10-11T06:15:18+00:00 January 10th, 2017|Bankruptcy, Liquidation|0 Comments

About the Author:

Director of Fresh Start Solutions and specialises in helping people free themselves from overwhelming debt. Whether it’s Bankruptcy, Liquidation, Insolvency Advice or simply General Debt Advice.