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 people stress over Bankruptcy, they fret about how it will affect their day-to-day lives, and if they will be able to keep their home, car, tools, and other essential belongings.

One of the ways that we can estimate this out is by utilizing the insolvency means test. It is something which we take our clients through to show 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 Alice Springs as there is normally an irrational fear that someone will arrive to your house to snatch all your stuff away, repossess your couch, television, even the coffee machine. However this is never ever going to hold true with pure bankruptcy since typically they do not care about these items. There are a few interesting exceptions although with Bankruptcy and belongings so if you have distinct worries about this make certain that you get a bit of guidance initially or call us here at Bankruptcy Experts Alice Springs on 1300 795 575.

 

Tools.

With Bankruptcy you may be impacted if you have pricey tools. The rules specify that you may retain tools of trade up to a limit of $3,700. Having said that 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 taking into consideration how much you would anticipate them to be worth, or how much you could get for all of them if you needed to sell them. But as a whole, the government does not want insolvency to become a barrier to you doing your job, so they don’t desire to deny you accessibility to your equipment. It is quite a great part of Bankruptcy, but sometimes could be complex. Therefore when it relates to tools of trade, you don’t have to worry simply contact us here at Bankruptcy Experts Alice Springs for some suggestions.

 

Motor vehicles

Individuals are constantly concerned about just how Bankruptcy will impact their motor vehicle. So the rule is that you can 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 sum of money you have actually 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 likely be sold for that amount, and $10,000 can be raised to pay off your bankruptcy debts. However, if you had a vehicle loan for that quantity instead then there would be no advantage to selling your motor vehicle.

How do you value your car? Easiest way is to just have a chat to a second hand car dealer and inquire just how much they might offer you for it– that will certainly give you a rough idea regarding how your car will be affected by this Bankruptcy process. Then you just have to take into consideration the worth of your auto loan or financing plan, and whether you are below or over the $7,600 threshold.

 

If your car is worth greater than these threshold levels get some help, at Bankruptcy Experts Alice Springs we assist individuals work through their options when it relates to cars.

 

The Family Home

Much like with Bankruptcy and motor vehicles, the approach that can be taken to your house will depend on equity. When there is no equity in the house, then there certainly is no use in forcing you to sell it. If there is no money to be earned by taking the house from you, then they are rarely going to bother. As an example if you possess a house worth $400,000 and you owe the financial institution $400,000 then more than likely you will be able to keep your house after bankruptcy.

The worst part about all of this though is that bankruptcy does not take into consideration emotions or justifications– you will not merely have the ability to keep your automobile or house because you ‘need it’ or considering that you have a strong emotional attachment. Bankruptcy can be harsh, but that is why you will need to make sure you talk to the right people. Don’t risk your family home by assuming or wishing you will have the capability to keep it post-bankruptcy because you have to live somewhere.

 

If you are stressed over your house or any other component of this Bankruptcy Means Test, then call us at Bankruptcy Experts Alice Springs on 1300 795 575 if you wish to know more about Bankruptcy and Houses or anything to do with Bankruptcy. We are here to truly help you. Visit our website for a lot more information, www.bankruptcyexpertsalicesprings.com.au.

 

We provide a Free- No Commitment Consultation so get in touch with us today 1300 795 575.

By | 2017-01-09T23:55:00+00:00 January 9th, 2017|article, blog, brankrupt|0 Comments

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