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.

Any time individuals stress over Bankruptcy, they fret 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 belongings.

Among the ways that we can estimate this out is by using the bankruptcy means test. It is something which we take our clients through to show them exactly how they may or may not be impacted, and what Bankruptcy will signify to them.
Personal and household items
Your possessions are always going to be a key aspect of concern with Bankruptcy in Fremantle as there is often an irrational worry that someone will arrive to your house to snatch all your stuff away, retrieve your couch, the television, even the coffee machine. But this is never ever going to be the case with pure bankruptcy because typically they do not care about these belongings. There are a couple of interesting exemptions although with Bankruptcy and belongings so if you have specific worries about this make sure that you get a bit of support first or contact us here at Bankruptcy Experts Fremantle on 1300 795 575.

Tools.
With Bankruptcy you might be affected if you have expensive tools. The guidelines specify that you may keep tools of trade up to a limit of $3,700. However remember that this is based upon ‘current cost’ so if you purchased your tools for $8,000 5 years ago, they are likely to be worth far less right now. So it is worth thinking about what amount you would anticipate them to be worth, or how much you could obtain for all of them if you needed to sell them. But as a whole, the government does not want insolvency to be a barrier to you doing your job, so they do not want to deny you accessibility to your tools. It is quite a good component of Bankruptcy, but sometimes might be confusing. So when it relates to tools of trade, you really don’t need to stress simply call us here at Bankruptcy Experts Fremantle for some suggestions.

Motor vehicles
Individuals are always concerned about how Bankruptcy will impact their car. So the rule is that you can keep one car or motorcycle up to the market 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 effectively put into the automobile, and how much is on a car loan. If you have purchased a car for $10,000 without having a loan, then the car can likely be sold for that amount, and $10,000 could be raised to pay off your bankruptcy debts. However, if you had a vehicle loan for that quantity instead then there would be no benefits to selling your motor vehicle.
How do you value your car? Simplest method is to simply have a chat to a second hand car dealership and inquire how much they would offer you for it– that will provide you a rough idea about how your vehicle will be affected by this Bankruptcy method. After that you just have to think about 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 more than these threshold quantities get some help, at Bankruptcy Experts Fremantle we assist people work through their options when it relates to cars.

The Family Home
Similar to with Bankruptcy and cars, the approach that will be taken to your house will certainly be dependent upon equity. If there is no equity in your home, then there is no purpose in forcing you to sell it. If there is no funds to be made by taking the house off you, then they are seldom going to bother. For instance if you own 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 insolvency.
The worst part about all of this though is that going bankrupt does not think about feelings or justifications– you will not simply have the ability to always keep your car or residence because you ‘need it’ or considering that you have a powerful emotional attachment. Bankruptcy can be cruel, but that is why you should make sure you speak with the right people. Don’t risk your family home by assuming or hoping you will have the ability to keep it post-bankruptcy because you need 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 Fremantle on 1300 795 575 if you wish to know more about Bankruptcy and Houses or anything to do with Bankruptcy. We are here to truly assist you. Visit our website for even more information, www.bankruptcyexpertsfremantle.com.au.

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

By | 2017-01-09T05:30:19+00:00 January 9th, 2017|article, Bankruptcy, Blog|0 Comments

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