Whenever individuals stress over Bankruptcy, they think about just how it will impact their day-to-day lives, and whether they will be able to retain their home, car, tools, and other important possessions.
One of the ways that we can work out this out is by using the insolvency means test. It is something that we take our clients through to show them just 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 Albury because there is often an unreasonable fear that someone will come out to your home to snatch all your stuff away, retrieve your couch, television, even the coffee machine. But this is never ever going to hold true with pure bankruptcy because typically they do not care about these belongings. 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 advice first or get in touch with us here at Bankruptcy Experts Albury on 1300 795 575.
With Bankruptcy you could be impacted if you have pricey 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 founded upon ‘current cost’ therefore if you bought your tools for $8,000 5 years before, they are most likely to be worth far less today. So it is worth thinking about how much you would expect them to be worth, or how much you could receive for them if you had to sell them. But as a whole, the government does not want personal bankruptcy to become a barrier to you doing your job, so they do not desire to deny you accessibility to your tools. It is quite a good component of Bankruptcy, but sometimes can be confusing. Therefore when it relates to tools of trade, you don’t need to worry just contact us here at Bankruptcy Experts Albury for some advice.
Individuals are always concerned about just how Bankruptcy will affect their car. So the rule is that you can easily keep one vehicle 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 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 quantity, and $10,000 could be raised to pay off your bankruptcy liabilities. Having said that, if you got a car loan for that amount instead then there would be no advantage to selling off your motor vehicle.
How do you value your car? Easiest method is to just have a chat to a second hand car dealer and inquire just how much they might provide you for it – that will certainly give you a rough idea about how your motor vehicle will be impacted by this Bankruptcy procedure. Then you just need to take into consideration the worth of your vehicle loan or financing plan, and whether you are below or above the $7,600 threshold.
If your car is worth greater than these threshold amounts get some help, at Bankruptcy Experts Albury we help individuals work through their alternatives when it relates to cars.
The Family Home
Similar to with Bankruptcy and cars, the approach that can be taken to your home will depend on equity. If there is no equity in your home, then there certainly is no use in forcing you to sell it. If there is zero money to be earned by taking the home from you, then they are almost never 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 be able to keep your home after bankruptcy.
The worst part about all this though is that personal bankruptcy does not take into account emotions or excuses– you will not just have the ability to manage to keep your automobile or home because you ‘need it’ or because you have a strong emotional attachment. Bankruptcy can be cruel, but that is the reason why you will need to make sure you speak with the right people. Don’t jeopardize your family home by presuming or wishing you will have the ability to keep it post-bankruptcy because you need to live somewhere.
If you are stressed out over your house or any other component of this Bankruptcy Means Test, then call us at Bankruptcy Experts Albury on 1300 795 575 if you wish to know more about Bankruptcy and Houses or almost anything to do with Bankruptcy. We are here to truly assist you. Visit our website for a lot more information, www.bankruptcyexpertsalbury.com.au.
We offer a Free- No Commitment Consultation so call us today 1300 795 575.