Any time individuals worry about Bankruptcy, they think about how it will affect their day-to-day lives, and if they will be able to retain their home, vehicle, tools, and other essential belongings.
Among 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 demonstrate to them exactly how they may or may not be impacted, and what Bankruptcy will mean to them.
Personal and household items
Your valuables are always going to be a key aspect of concern with Bankruptcy in Lismore since there is usually an unreasonable fear that someone will arrive to your property to take all your stuff away, retrieve your couch, the television, even the coffee machine. But this is never ever going to hold true with pure bankruptcy since often they do not care about these valuables. There are a few interesting exceptions though with Bankruptcy and belongings so if you have particular worries about this make certain that you get a bit of guidance first or get in touch with us here at Bankruptcy Experts Lismore on 1300 795 575.
With Bankruptcy you might be affected if you have high priced tools. The guidelines explain that you may keep tools of trade up to a limit of $3,700. Having said that keep in mind that this is based upon ‘current cost’ so if you bought your tools for $8,000 5 years before, they are likely to be worth far less today. So it is worth thinking about just how much you would anticipate them to be worth, or how much you could obtain for them if you had to sell them. But overall, the government doesn’t want bankruptcy to be a barrier to you working, so they do not desire to deny you access to your equipment. It is quite a good component of Bankruptcy, but sometimes might be complex. So when it relates to tools of trade, you don’t have to stress simply call us here at Bankruptcy Experts Lismore for some guidance.
Individuals are constantly troubled about how Bankruptcy will affect their motor vehicle. So the guideline is that you can retain 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 how much is on a loan. If you have purchased a car for $10,000 without having a loan, then the car can possibly be sold for that amount, and $10,000 can be raised to pay off your bankruptcy debts. Having said that, if you had a vehicle loan for that amount instead then there would be no benefits to selling your vehicle.
How do you value your car? Simplest way is to simply have a chat to a used car dealership and inquire how much they might provide you for it– that will certainly give you a rough idea about how your motor vehicle will be affected by this Bankruptcy process. Then you just have to take into consideration the value of your auto loan or financing plan, and whether you are under or over the $7,600 threshold.
If your car is worth greater than these threshold amounts get some support, at Bankruptcy Experts Lismore we help individuals work through their possibilities when it relates to cars.
The Family Property
Just like with Bankruptcy and vehicles, the approach that can be taken to your residential property will be dependent upon equity. In case there is no equity in your house, then there certainly is no purpose in forcing you to sell it. If there is no money to be earned by taking the home from you, then they are rarely going to bother. For instance if you own a house worth $400,000 and you owe the bank $400,000 then more than likely you will have the ability to maintain your house after insolvency.
The worst part about all of this though is that going bankrupt does not take into consideration emotions or justifications– you will not simply be able to always keep your vehicle or residence because you ‘need it’ or considering that you have a powerful emotional attachment. Bankruptcy can be cruel, but that is exactly why you will need to ensure you speak with the right people. Don’t risk your family home by assuming or hoping you will have the capability to maintain it post-bankruptcy just because you have to live somewhere.
If you are stressed over your home or any other component of this Bankruptcy Means Test, then call us at Bankruptcy Experts Lismore 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 even more information, www.bankruptcyexpertslismore.com.au.
We offer a Free- No Commitment Consultation so call us today 1300 795 575.