Whenever people worry about Bankruptcy, they worry about how it will affect their day-to-day lives, and whether they will be able to keep their house, vehicle, tools, and other important belongings.
One of the ways that we can figure this out is by utilizing the bankruptcy means test. It is something which we take our clients through to present to them exactly how they may or may not be affected, and what Bankruptcy will signify to them.
Personal and household items
Your belongings are always going to be a crucial aspect of concern with Bankruptcy in Dubbo as there is usually an irrational concern that someone will come out to your property to take all your stuff away, repossess your couch, the television, even the coffee machine. But this is never going to be the case with pure insolvency 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 particular concerns about this make certain that you get a bit of advice initially or contact us here at Bankruptcy Experts Dubbo on 1300 795 575.
With Bankruptcy you might be affected if you have expensive tools. The guidelines explain that you may keep tools of trade up to a limit of $3,700. Having said that remember that this is based upon ‘current cost’ so 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 what amount you would expect them to be valued at, or how much you could receive for them if you needed to sell them. But as a whole, the government doesn’t want insolvency to be a barrier to you doing your job, so they don’t desire to deny you accessibility to your tools. It is quite a good part of Bankruptcy, but sometimes could be confusing. So when it relates to tools of trade, you really don’t have to worry simply contact us here at Bankruptcy Experts Dubbo for some suggestions.
People are always worried about how Bankruptcy will impact their vehicle. So the rule is that you can easily retain one car or motorbike 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 amount of money you have actually put into the car, and just how much is on a car loan. If you have bought a car for $10,000 without a loan, then the car can potentially be sold for that amount, and $10,000 can be raised to pay off your bankruptcy liabilities. However, if you had a vehicle loan for that amount instead then there would be no benefit to selling your car.
How do you value your car? Simplest way is to simply have a chat to a second hand car dealership and inquire how much they might offer you for it– that will certainly give you a rough idea regarding how your motor vehicle will be affected by this Bankruptcy method. Then you just need to take into consideration the value of your car loan or financing plan, and whether you are below or above the $7,600 threshold.
If your car is worth more than these threshold levels get some support, at Bankruptcy Experts Dubbo we guide people work through their options when it relates to cars.
The Family Home
Similar to with Bankruptcy and cars, the approach that can be taken to your residential property will certainly be dependent upon equity. In case there is no equity in your home, then there is no purpose in forcing you to sell it. If there is no funds to be earned by taking the house off you, then they are rarely going to bother. As an example if you own a home worth $400,000 and you owe the financial institution $400,000 then more than likely you will have the ability to keep your house after bankruptcy.
The worst part about all this though is that bankruptcy does not take into account emotions or justifications– you will not simply be able to keep your vehicle or house because you ‘need it’ or because you have a strong emotional attachment. Bankruptcy may be harsh, but that is the reason why you need to make sure you talk to the right people. Don’t jeopardize your family home by assuming or hoping you will have the ability to keep it post-bankruptcy because you need to dwell somewhere.
If you are worried over your house or any other part of this Bankruptcy Means Test, then call us at Bankruptcy Experts Dubbo 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 really help you. Visit our website for much more information, www.bankruptcyexpertsdubbo.com.au.
We offer a Free- No Commitment Consultation so call us today 1300 795 575.