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.

Whenever individuals worry about Bankruptcy, they think about 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.

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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 how they may or may not be affected, and what Bankruptcy will mean to them.

Personal and household items

Your belongings are always going to be a crucial aspect of concern with Bankruptcy in Kalgoorlie as there is normally an illogical fear that someone will arrive to your home to take all your stuff away, retrieve your couch, television, even the coffee machine. However this is never ever going to be the case with pure insolvency since typically they do not care about these belongings. There are a few interesting exceptions though with Bankruptcy and belongings so if you have specific worries about this make certain that you get a bit of guidance first or contact us here at Bankruptcy Experts Kalgoorlie on 1300 795 575.

Tools.

With Bankruptcy you might be impacted if you have expensive tools. The rules specify that you may retain tools of trade up to a limit of $3,700. However keep in mind that this is based upon ‘current cost’ therefore if you purchased your tools for $8,000 5 years before, they are likely to be worth far less right now. So it is worth considering what amount you would anticipate them to be valued at, 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 working, so they do not desire to deny you accessibility to your tools. It is quite a great part of Bankruptcy, but sometimes could be complex. So when it relates to tools of trade, you do not need to stress simply contact us here at Bankruptcy Experts Kalgoorlie for some suggestions.

Motor vehicles

Individuals are always troubled about just how Bankruptcy will affect their motor vehicle. So the rule is that you can retain one vehicle or motorbike up to the market 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 vehicle, 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 amount, and $10,000 could be raised to pay off your bankruptcy liabilities. However, if you got a car loan for that quantity instead then there would be no benefit 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 just how much they would provide you for it– that will certainly give you a rough idea regarding how your car will be impacted by this Bankruptcy process. At that point you just need to consider the worth of your car loan or financing plan, and whether you are below or above the $7,600 threshold.

If your car is worth greater than these threshold quantities get some support, at Bankruptcy Experts Kalgoorlie we help people work through their possibilities when it relates to cars.

The Family Property

Much like with Bankruptcy and motor vehicles, the approach that will be taken to your home 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 zero money to be earned by taking the home from you, then they are hardly ever going to bother. For instance 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 insolvency.

The worst part about all of this though is that bankruptcy does not take into consideration feelings or excuses– you will not simply have the ability to always keep your car or residence because you ‘need it’ or considering that you have a strong emotional attachment. Bankruptcy may be cruel, but that is the reason why you need to ensure you speak with the right people. Don’t risk your family home by presuming or hoping you will have the ability to keep it post-bankruptcy just because you need to dwell somewhere.

If you are stressed out over your house or any other component of this Bankruptcy Means Test, then call us at Bankruptcy Experts Kalgoorlie 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 help you. Visit our website for much more information, www.bankruptcyexpertskalgoorlie.com.au.

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

By | 2020-08-17T01:01:39+00:00 January 10th, 2017|Article, bankruptcy, blog|0 Comments

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