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What can I maintain when I’m Bankrupt – The bankruptcy means test.

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What can I maintain when I’m Bankrupt – The bankruptcy means test.

Whenever individuals worry about Bankruptcy, they fret about how it will affect their day-to-day lives, and whether they will be able to keep their house, vehicle, tools, and other essential belongings.

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One of the ways that we can work out this out is by using the bankruptcy means test. It is something which we take our clients through to demonstrate to them how they may or may not be affected, and what Bankruptcy will mean to them.

Personal and household items

Your possessions are always going to be a crucial aspect of concern with Bankruptcy in Emerald since there is normally an illogical concern that someone will come out to your house to swipe all your stuff away, repossess your couch, television, even the coffee machine. But this is never ever going to be the case with pure bankruptcy because typically they don’t care about these valuables. There are a few intriguing exceptions though with Bankruptcy and belongings so if you have individual concerns about this make certain that you get some support first or contact us here at Bankruptcy Experts Emerald on 1300 795 575.

Tools.

With Bankruptcy you might be impacted if you have costly tools. The guidelines explain that you may keep tools of trade up to a limit of $3,700. However remember that this is based upon ‘current cost’ and so if you purchased your tools for $8,000 5 years ago, they are likely to be worth far less these days. So it is worth taking into consideration how much you would anticipate them to be worth, or how much you could obtain for them if you needed to sell them. But as a whole, the government does not want personal bankruptcy to be a barrier to you doing your job, so they do not want to deny you accessibility to your equipment. It is quite a good component of Bankruptcy, but sometimes can be complex. Therefore when it relates to tools of trade, you don’t need to stress simply call us here at Bankruptcy Experts Emerald for some guidance.

Motor vehicles

Individuals are always worried about just how Bankruptcy will impact their motor vehicle. So the rule is that you can retain one car or motorcycle up to the market 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 bought a car for $10,000 without having a loan, then the car can possibly be sold for that quantity, and $10,000 can be raised to pay off your bankruptcy liabilities. On the other hand, if you got a car loan for that amount instead then there would be no benefit to selling off your vehicle.

How do you value your car? Simplest method is to just have a chat to a used car dealership and inquire just how much they would offer you for it– that will provide you a rough idea regarding how your vehicle will be affected by this Bankruptcy method. At that point you just need to think about the worth of your vehicle loan or financing plan, and whether you are under or over the $7,600 threshold.

If your car is worth greater than these threshold levels get some assistance, at Bankruptcy Experts Emerald we assist people work through their alternatives when it relates to cars.

The Family Property

Much like with Bankruptcy and cars, the approach that can be taken to your residential property will certainly depend on equity. In case there is no equity in the house, then there is no use in forcing you to sell it. If there is no money to be made by taking the house from you, then they are hardly ever going to bother. For instance if you possess a house worth $400,000 and you owe the financial institution $400,000 then more than likely you will have the ability to maintain your residential property after bankruptcy.

The worst part about all of this though is that going bankrupt does not take into consideration feelings or excuses– you will not simply have the ability to always keep your vehicle or home because you ‘need it’ or because you have a powerful emotional attachment. Bankruptcy may be harsh, but that is why you will need to ensure you talk to the right people. Don’t jeopardize your family home by presuming or hoping you will have the capability to keep it post-bankruptcy because you have to live somewhere.

If you are anxious over your home or any other aspect of this Bankruptcy Means Test, then call us at Bankruptcy Experts Emerald on 1300 795 575 if you would like 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.bankruptcyexpertsemerald.com.au.

 

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

By | 2017-11-16T06:20:15+00:00 January 10th, 2017|Article, Bankruptcy, Blog|0 Comments

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