Any time individuals stress over Bankruptcy, they worry about just how it will affect their day-to-day lives, and whether they will be able to keep their home, vehicle, tools, and other important possessions.
One of the ways that we can figure this out is by utilizing the insolvency means test. It is something which we take our clients through to demonstrate to them how they may or may not be affected, and what Bankruptcy will mean to them.
Personal and household items
Your valuables are always going to be a key aspect of concern with Bankruptcy in Penrith because there is normally an unreasonable concern that someone will arrive to your property 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 often they don’t care about these belongings. There are a couple of intriguing exceptions although with Bankruptcy and belongings so if you have distinct worries about this make certain that you get some advice initially or contact us here at Bankruptcy Experts Penrith on 1300 795 575.
With Bankruptcy you could be impacted if you have expensive tools. The rules specify that you may retain tools of trade up to a limit of $3,700. Having said that keep in mind that this is based 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 what amount you would anticipate them to be worth, or how much you could get for all of 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 do not desire to refuse you access to your tools. It is quite a good part of Bankruptcy, but sometimes could be complicated. Therefore when it relates to tools of trade, you really don’t need to worry simply contact us here at Bankruptcy Experts Penrith for some suggestions.
People are constantly concerned about just how Bankruptcy will impact their vehicle. So the rule is that you can easily retain one car or motorcycle up to the market value of $7,600.
This takes into account current value, as well as the equity. What does this mean? Well, equity deals with the sum of money you have essentially put into the automobile, and how much is on a loan. If you have purchased a car for $10,000 without having a loan, then the car can likely be sold for that quantity, and $10,000 could be raised to pay off your bankruptcy debts. Having said that, if you got a vehicle loan for that amount instead then there would be no benefits to selling off your car.
How do you value your car? Simplest method is to simply have a chat to a used car dealership and ask how much they would offer 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 consider the value of your car 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 Penrith we assist people work through their possibilities when it relates to cars.
The Family Home
Much like with Bankruptcy and cars, the approach that will be taken to your residential property will depend on equity. In case there is no equity in your home, then there is no purpose in forcing you to sell it. If there is absolutely no money to be earned by taking the house off you, then they are rarely going to bother. As an 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 residential property after insolvency.
The worst part about all this though is that insolvency does not take into consideration emotions or justifications– you will not just have the ability to keep your vehicle or home because you ‘need it’ or considering that you have a powerful emotional attachment. Bankruptcy may be cruel, but that is why you need to ensure you speak to the right people. Don’t jeopardize your family home by presuming or hoping you will have the capacity 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 Penrith 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.bankruptcyexpertspenrith.com.au.
We offer a Free- No Commitment Consultation so get in touch with us today 1300 795 575.