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.

Whenever individuals worry about Bankruptcy, they think about how it will impact their day-to-day lives, and if they will be able to keep their home, vehicle, tools, and other important possessions.

 

Among the ways that we can figure this out is by using the bankruptcy 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 key area of concern with Bankruptcy in Adelaide as there is normally an illogical worry that someone will come along to your home to swipe all your stuff away, repossess your couch, television, even the coffee machine. But this is never going to hold true with pure insolvency because typically they do not care about these valuables. There are a couple of interesting exceptions though with Bankruptcy and belongings so if you have distinct concerns about this make certain that you get a bit of guidance initially or call us here at Bankruptcy Experts Adelaide on 1300 795 575.

Tools.

With Bankruptcy you might be impacted if you have expensive tools. The guidelines explain that you may keep tools of trade up to a limit of $3,700. However remember that this is founded upon ‘current cost’ and so if you bought your tools for $8,000 5 years before, they are likely to be worth far less these days. So it is worth thinking about how much you would anticipate them to be worth, or how much you could receive for them if you had to sell them. But as a whole, the government doesn’t want bankruptcy to become a barrier to you doing your job, so they do not desire to refuse you access to your equipment. It is quite a great part of Bankruptcy, but sometimes might be complicated. Therefore when it relates to tools of trade, you really don’t have to worry simply call us here at Bankruptcy Experts Adelaide for some advice.

Cars

People are constantly troubled about just how Bankruptcy will affect their car. So the rule is that you can easily keep one vehicle or motorcycle up to the value of $7,600.

This takes into account current value, and also the equity. What does this mean? Well, equity deals with the sum of money you have essentially put into the automobile, and how much is on a car loan. If you have purchased 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. Having said that, if you had a car loan for that quantity instead then there would be no benefit to selling your vehicle.

How do you value your car? Easiest way is to simply have a chat to a second hand car dealer and ask just how much they might give you for it– that will give you a rough idea about how your vehicle will be impacted by this Bankruptcy procedure. Then you just need to take into consideration the worth of your auto loan or financing plan, and whether you are under or above the $7,600 threshold.

If your car is worth more than these threshold amounts get some assistance, at Bankruptcy Experts Adelaide we assist people work through their options when it relates to cars.

The Family Home

Just like with Bankruptcy and vehicles, the approach that will be taken to your residential property will depend on equity. If there is no equity in the house, then there is no point in forcing you to sell it. If there is absolutely no money to be made by taking the house off you, then they are rarely going to bother. For example if you possess a home worth $400,000 and you owe the bank $400,000 then more than likely you will have the chance to retain your house after insolvency.

The worst part about all of this though is that personal bankruptcy does not think about feelings or justifications– you will not merely have the ability to manage to keep your vehicle or home because you ‘need it’ or considering that you have a strong emotional attachment. Bankruptcy may be harsh, but that is the reason why you need to ensure you talk to the right people. Do not risk your family home by presuming or hoping you will have the capacity to keep it post-bankruptcy because you need 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 Adelaide 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 really assist you. Visit our website for much more information, www.bankruptcyexpertsadelaide.com.au.

 

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

By | 2017-11-23T01:38:38+00:00 January 9th, 2017|bankrupt, blog|0 Comments

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