Any time individuals worry about Bankruptcy, they think about just how it will affect their day-to-day lives, and if they will be able to keep their home, vehicle, tools, and other important possessions.
One of 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 affected, and what Bankruptcy will mean to them.
Personal and household items
Your valuables are always going to be a key area of concern with Bankruptcy in Melbourne since there is normally an unreasonable concern that someone will come out to your property to take all your stuff away, repossess your couch, the television, even the coffee machine. But this is never going to hold true with pure bankruptcy because typically they don’t care about these possessions. There are a few interesting exceptions though with Bankruptcy and belongings so if you have individual worries about this make certain that you get some guidance first or contact us here at Bankruptcy Melbourne on 1300 795 575.
With Bankruptcy you might be impacted if you have expensive tools. The rules specify that you may keep tools of trade up to a limit of $3,700. However keep in mind that this is based upon ‘current cost’ so if you purchased 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 expect them to be worth, or how much you could receive for all of them if you needed to sell them. But overall, the government doesn’t want personal bankruptcy to become a barrier to you doing your job, so they do not want to deny you accessibility to your equipment. It is quite a good part of Bankruptcy, but sometimes might be complex. Therefore when it relates to tools of trade, you don’t need to stress simply contact us here at Bankruptcy Melbourne for some suggestions.
People are constantly troubled about just how Bankruptcy will affect their car. So the rule is that you can retain one vehicle or motorbike up to the value of $7,600.
This takes into consideration current value, and also the equity. What does this mean? Well, equity deals with the sum of money you have actually put into the automobile, and how much is on a loan. If you have bought a car for $10,000 without a loan, then the car can potentially be sold for that amount, and $10,000 can be raised to pay off your bankruptcy debts. However, if you got a car loan for that quantity instead then there would be no advantage to selling your motor vehicle.
How do you value your car? Easiest method is to just have a chat to a second hand car dealer and ask just how much they might give you for it– that will provide you a rough idea about how your vehicle will be affected by this Bankruptcy procedure. After that 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 greater than these threshold quantities get some support, at Bankruptcy Melbourne we guide individuals work through their possibilities when it relates to cars.
The Family Property
Just like with Bankruptcy and vehicles, the approach that will be taken to your house will certainly be dependent upon equity. In case there is no equity in your house, then there is no purpose in forcing you to sell it. If there is no funds to be earned by taking the home 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 have the ability to keep your home after bankruptcy.
The worst part about all of this though is that insolvency does not take into account feelings or justifications– you will not simply have the ability to always keep your vehicle or residence because you ‘need it’ or because you have a strong emotional attachment. Bankruptcy can be harsh, but that is why you should ensure you talk to the right people. Don’t jeopardize your family home by presuming or hoping you will have the capacity to maintain it post-bankruptcy because you need to dwell somewhere.
If you are worried over your home or any other component of this Bankruptcy Means Test, then call us at Bankruptcy Melbourne on 1300 795 575 if you want to know more about Bankruptcy and Houses or almost anything to do with Bankruptcy. We are here to truly help you. Visit our website for a lot more information, www.bankruptcymelbourne.com.au.
We provide a Free- No Commitment Consultation so contact us today 1300 795 575.