January 10, 2017Comments Closed

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

Posted by:admin onJanuary 10, 2017

Any time people stress over Bankruptcy, they fret about just how it will impact their day-to-day lives, and whether they will be able to keep their house, vehicle, tools, and other essential possessions.

Bankruptcy Experts Mount Isa

One of the ways that we can figure this out is by using 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 crucial area of concern with Bankruptcy in Mount Isa as there is normally an irrational fear that someone will come out to your home to take all your stuff away, repossess your couch, television, even the coffee machine. However this is never ever going to hold true with pure bankruptcy because often they do not care about these items. There are a few interesting exceptions though with Bankruptcy and belongings so if you have distinct worries about this make certain that you get some guidance first or get in touch with us here at Bankruptcy Experts Mount Isa on 1300 795 575.

Tools.

With Bankruptcy you could be affected if you have costly tools. The guidelines explain that you may keep tools of trade up to a limit of $3,700. However remember that this is based upon ‘current cost’ and so if you bought your tools for $8,000 5 years ago, they are most likely to be worth far less today. So it is worth considering what amount you would expect them to be valued at, or how much you could obtain for them if you needed to sell them. But overall, the government doesn’t want personal 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 can be complex. Therefore when it relates to tools of trade, you really don’t have to stress just contact us here at Bankruptcy Experts Mount Isa for some guidance.

Motor vehicles

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

This takes into consideration present value, and also 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 car loan. If you have purchased a car for $10,000 without having a loan, then the car can potentially be sold for that quantity, and $10,000 could be raised to pay off your bankruptcy liabilities. However, if you had a vehicle loan for that quantity instead then there would be no advantage to selling your vehicle.

How do you value your car? Easiest method is to just have a chat to a second hand car dealer and inquire how much they would provide you for it– that will present you a rough idea regarding how your motor vehicle will be impacted by this Bankruptcy procedure. Then you just need to consider the value 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 quantities get some support, at Bankruptcy Experts Mount Isa we help people work through their choices 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 depend on equity. If there is no equity in your house, then there is no purpose in forcing you to sell it. If there is absolutely no funds to be earned by taking the home off you, then they are rarely going to bother. As an example if you possess a home 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 of this though is that going bankrupt does not take into account emotions or excuses– you will not just have the ability to always keep your vehicle or residence because you ‘need it’ or because you have a powerful emotional attachment. Bankruptcy may be cruel, but that is exactly why you will need to ensure you speak to the right people. Do not risk your family home by assuming 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 house or any other aspect of this Bankruptcy Means Test, then call us at Bankruptcy Experts Mount Isa on 1300 795 575 if you would like to know more about Bankruptcy and Houses or almost anything to do with Bankruptcy. We are here to truly support you. Visit our website for even more information, www.bankruptcyexpertsmountisa.com.au.

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

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