Any time people stress over Bankruptcy, they fret about just how it will impact their day-to-day lives, and if they will be able to keep their house, vehicle, tools, and other important belongings.
One of 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 show them exactly how they may or may not be impacted, and what Bankruptcy will signify to them.
Personal and household items
Your belongings are always going to be a key aspect of concern with Bankruptcy in Wyong as there is often 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 hold true with pure insolvency since often they don’t care about these possessions. There are a couple of interesting exemptions although with Bankruptcy and belongings so if you have individual worries about this make certain that you get some guidance initially or contact us here at Bankruptcy Experts Wyong on 1300 795 575.
With Bankruptcy you may be affected if you have expensive tools. The rules state that you may retain tools of trade up to a limit of $3,700. However bear in mind that this is founded upon ‘current cost’ therefore if you bought your tools for $8,000 5 years before, they are most likely to be worth far less today. So it is worth thinking about just how much you would anticipate them to be valued at, or how much you could receive for them if you had to sell them. But as a whole, the government does not want bankruptcy to become a barrier to you doing your job, so they don’t want to deny you accessibility to your equipment. It is quite a great component of Bankruptcy, but sometimes might be complex. So when it relates to tools of trade, you really don’t have to stress simply call us here at Bankruptcy Experts Wyong for some suggestions.
People are constantly worried about just how Bankruptcy will impact their vehicle. So the guideline is that you can easily retain one vehicle or motorcycle 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 sum of money you have effectively put into the automobile, and how much is on a loan. If you have purchased a car for $10,000 without a loan, then the car can likely be sold for that quantity, and $10,000 could be raised to pay off your bankruptcy liabilities. However, if you had a car loan for that quantity instead then there would be no benefit 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 ask how much they might offer you for it– that will give you a rough idea about how your motor vehicle will be impacted by this Bankruptcy method. At that point you just need to take into consideration the value of your car loan or financing plan, and whether you are below or above the $7,600 threshold.
If your car is worth more than these threshold levels get some support, at Bankruptcy Experts Wyong we assist people work through their alternatives when it relates to cars.
The Family Home
Just like with Bankruptcy and vehicles, the approach that will be taken to your home will depend on equity. If there is no equity in the house, then there is no purpose in forcing you to sell it. If there is zero money to be earned by taking the home from you, then they are seldom going to bother. For 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 maintain your residential property after insolvency.
The worst part about all this though is that personal bankruptcy does not take into consideration emotions or justifications– you will not simply be able to always keep your automobile or house because you ‘need it’ or considering that you have a powerful emotional attachment. Bankruptcy can be harsh, but that is why you need to make sure you talk to the right people. Don’t jeopardize your family home by assuming or wishing you will have the capability to keep it post-bankruptcy because you need to live somewhere.
If you are stressed out over your house or any other component of this Bankruptcy Means Test, then call us at Bankruptcy Experts Wyong on 1300 795 575 if you want to know more about Bankruptcy and Houses or almost anything to do with Bankruptcy. We are here to really support you. Visit our website for even more information, www.bankruptcyexpertswyong.com.au.
We provide a Free- No Commitment Consultation so call us today 1300 795 575.