Whenever people stress over Bankruptcy, they worry about 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 work out this out is by utilizing the insolvency 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 key aspect of concern with Bankruptcy in Geraldton as there is normally an illogical worry that someone will come along to your house to swipe all your stuff away, repossess your couch, television, even the coffee machine. However this is never ever going to be the case with pure bankruptcy because typically they do not care about these items. There are a couple of interesting exceptions although with Bankruptcy and belongings so if you have specific concerns about this make sure that you get some advice initially or call us here at Bankruptcy Experts Geraldton on 1300 795 575.
With Bankruptcy you may be affected if you have high priced tools. The rules state that you may retain tools of trade up to a limit of $3,700. Having said that keep in mind that this is founded upon ‘current cost’ therefore if you purchased your tools for $8,000 5 years ago, they are likely to be worth far less today. So it is worth thinking about just how much you would expect them to be worth, or how much you could get for them if you had 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 tools. It is quite a great component of Bankruptcy, but sometimes can be confusing. Therefore when it relates to tools of trade, you really don’t have to worry just contact us here at Bankruptcy Experts Geraldton for some guidance.
People are constantly worried about just how Bankruptcy will impact their motor vehicle. So the guideline is that you can retain one vehicle or motorbike up to the value of $7,600.
This takes into consideration current value, as well as the equity. What does this mean? Well, equity deals with the sum of money you have effectively put into the car, and just how much is on a loan. If you have purchased 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 liabilities. However, if you had a car loan for that quantity instead then there would be no advantage to selling your car.
How do you value your car? Simplest method is to just have a chat to a second hand car dealer and ask how much they would provide you for it– that will certainly provide you a rough idea regarding how your vehicle will be affected by this Bankruptcy process. After that you just have to think about the value of your vehicle loan or financing plan, and whether you are under or above the $7,600 threshold.
If your car is worth more than these threshold levels get some help, at Bankruptcy Experts Geraldton we guide individuals work through their alternatives when it relates to cars.
The Family Property
Much like with Bankruptcy and motor vehicles, the approach that can be taken to your residential property will be dependent upon equity. If there is no equity in the house, then there certainly is no point in forcing you to sell it. If there is zero money to be earned by taking the house off you, then they are almost never going to bother. For instance if you own a house worth $400,000 and you owe the bank $400,000 then more than likely you will have the ability to maintain your house after bankruptcy.
The worst part about all this though is that bankruptcy does not take into account feelings or excuses– you will not merely have the ability to keep your automobile or home because you ‘need it’ or considering that you have a powerful emotional attachment. Bankruptcy can be cruel, but that is why you need to make sure you speak to the right people. Don’t risk your family home by assuming or hoping you will have the capacity to keep it post-bankruptcy because you need to live somewhere.
If you are anxious over your house or any other aspect of this Bankruptcy Means Test, then call us at Bankruptcy Experts Geraldton on 1300 795 575 if you want to know more about Bankruptcy and Houses or anything to do with Bankruptcy. We are here to truly assist you. Visit our website for much more information, www.bankruptcyexpertsgeraldton.com.au.
We provide a Free- No Commitment Consultation so contact us today 1300 795 575.