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

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

Any time people stress over Bankruptcy, they fret about just 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.

Among the ways that we can estimate this out is by using the insolvency means test. It is something which we take our clients through to demonstrate to them how they may or may not be impacted, and what Bankruptcy will mean to them.

Personal and household items

Your valuables are always going to be a key area of concern with Bankruptcy in Mildura since there is often an illogical worry that someone will come out to your property to snatch all your stuff away, repossess your couch, television, even the coffee machine. But this is never ever going to hold true with pure insolvency because typically they don’t care about these valuables. There are a couple of interesting exemptions though with Bankruptcy and belongings so if you have specific concerns about this make certain that you get a bit of support first or get in touch with us here at Bankruptcy Experts Mildura on 1300 795 575.

Tools.

With Bankruptcy you might be impacted if you have expensive tools. The guidelines state that you may retain tools of trade up to a limit of $3,700. However remember that this is founded upon ‘current cost’ so if you bought your tools for $8,000 5 years before, they are likely to be worth far less today. So it is worth thinking about what amount you would expect them to be worth, or how much you could obtain for all of them if you needed to sell them. But overall, the government doesn’t want bankruptcy to become a barrier to you doing your job, so they do not desire to deny you access to your equipment. It is quite a good part of Bankruptcy, but sometimes might be confusing. So when it relates to tools of trade, you do not need to stress simply call us here at Bankruptcy Experts Mildura for some advice.

Motor vehicles

People are always worried about how Bankruptcy will affect their vehicle. So the rule is that you can keep one car or motorcycle up to the value of $7,600.

This takes into account present value, and also the equity. What does this mean? Well, equity deals with the sum of money you have essentially put into the vehicle, and how much is on a loan. If you have purchased 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 liabilities. On the other hand, if you got a vehicle loan for that quantity instead then there would be no benefits to selling your car.

How do you value your car? Easiest way is to just have a chat to a used car dealership and inquire how much they might provide you for it– that will certainly present you a rough idea regarding how your motor vehicle will be impacted by this Bankruptcy procedure. Then you just have to take into consideration the worth of your car loan or financing plan, and whether you are under or above the $7,600 threshold.

If your car is worth greater than these threshold amounts get some help, at Bankruptcy Experts Mildura we assist people work through their options when it relates to cars.

The Family Home

Much like with Bankruptcy and cars, the approach that can be taken to your home will certainly be dependent upon equity. When there is no equity in the house, then there is no purpose in forcing you to sell it. If there is absolutely no money to be made by taking the home off you, then they are almost never going to bother. For example if you own a house worth $400,000 and you owe the financial institution $400,000 then more than likely you will have the chance to retain your house after bankruptcy.

The worst part about all of this though is that personal bankruptcy does not think about feelings or justifications– you will not merely be able to manage to keep your automobile or residence because you ‘need it’ or considering that you have a strong emotional attachment. Bankruptcy can be harsh, but that is exactly why you should make sure you talk to the right people. Do not jeopardize your family home by assuming or hoping you will have the capability to keep it post-bankruptcy just because you have to live somewhere.

If you are worried over your home or any other aspect of this Bankruptcy Means Test, then call us at Bankruptcy Experts Mildura 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 support you. Visit our website for much more information, www.bankruptcyexpertsmildura.com.au.

We provide a Free- No Commitment Consultation so contact us today 1300 795 575.

By | 2017-11-15T01:57:52+00:00 January 10th, 2017|Articles, bankruptcy, blog|0 Comments

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