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.

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 retain their house, car, tools, and other essential belongings.

One of the ways that we can figure this out is by utilizing the insolvency means test. It is something that we take our clients through to present to them exactly 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 key area of concern with Bankruptcy in Tennant Creek because there is usually an irrational fear that someone will come along to your property to snatch all your stuff away, retrieve your couch, television, even the coffee machine. However this is never going to be the case with pure bankruptcy because often they don’t care about these valuables. There are a couple of interesting exemptions though with Bankruptcy and belongings so if you have particular concerns about this make sure that you get a bit of advice initially or call us here at Bankruptcy Experts Tennant Creek on 1300 795 575.

Tools.

With Bankruptcy you might be impacted if you have costly tools. The rules specify that you may keep tools of trade up to a limit of $3,700. However bear in mind that this is based upon ‘current cost’ so if you bought your tools for $8,000 5 years before, they are most likely to be worth far less right now. So it is worth considering how much you would anticipate them to be worth, or how much you could obtain for all of them if you had to sell them. But overall, the government doesn’t want bankruptcy to be a barrier to you doing your job, so they do not want to refuse you accessibility to your tools. It is quite a great part of Bankruptcy, but sometimes could be complex. Therefore when it relates to tools of trade, you really don’t need to stress simply call us here at Bankruptcy Experts Tennant Creek for some guidance.

Motor vehicles

Individuals are always troubled about just how Bankruptcy will impact their motor vehicle. So the rule is that you can keep one car or motorcycle 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 vehicle, and just how much is on a loan. If you have bought a car for $10,000 without a loan, then the car can potentially be sold for that quantity, and $10,000 could be raised to pay off your bankruptcy debts. However, if you had a vehicle loan for that quantity instead then there would be no benefits to selling your motor vehicle.

How do you value your car? Easiest way is to simply have a chat to a second hand car dealership and ask 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. After that you just have to take into consideration 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 more than these threshold quantities get some assistance, at Bankruptcy Experts Tennant Creek we help people work through their options when it relates to cars.

The Family Property

Similar to with Bankruptcy and motor vehicles, the approach that will be taken to your residential property will certainly depend on equity. In case there is no equity in your house, then there is no point in forcing you to sell it. If there is absolutely no funds to be made by taking the home off you, then they are hardly ever going to bother. For 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 ability to retain your residential property after insolvency.

The worst part about all this though is that insolvency does not take into account feelings or excuses– you will not just have the ability to manage to keep your vehicle or residence because you ‘need it’ or considering that you have a strong emotional attachment. Bankruptcy can be harsh, but that is the reason why you should make sure you speak with the right people. Don’t risk your family home by presuming or hoping you will have the capacity to maintain it post-bankruptcy because you need to dwell somewhere.

If you are worried over your house or any other component of this Bankruptcy Means Test, then call us at Bankruptcy Experts Tennant Creek 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 a lot more information, www.bankruptcyexpertstennantcreek.com.au.

We offer a Free- No Commitment Consultation so call us today 1300 795 575.

By | 2017-11-15T02:37:51+00:00 January 10th, 2017|Bankrupt, Blog|0 Comments

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