Any time individuals stress over Bankruptcy, they fret about how it will affect their day-to-day lives, and whether they will be able to keep their home, car, tools, and other important belongings.
One of the ways that we can figure this out is by utilizing the insolvency means test. It is something that we take our clients through to present to them how they may or may not be affected, and what Bankruptcy will signify to them.
Personal and household items
Your valuables are always going to be a key area of concern with Bankruptcy in Wagga Wagga since there is usually an illogical fear that someone will arrive to your home to snatch all your stuff away, retrieve your couch, television, even the coffee machine. But this is never going to be the case with pure insolvency because often they don’t care about these valuables. There are a couple of interesting exemptions although with Bankruptcy and belongings so if you have individual concerns about this make certain that you get a bit of support first or contact us here at Bankruptcy Experts Wagga Wagga on 1300 795 575.
With Bankruptcy you may be impacted if you have high priced tools. The rules explain that you may retain tools of trade up to a limit of $3,700. However bear in mind that this is based upon ‘current cost’ so 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 considering just how much you would expect them to be valued at, or how much you could obtain for them if you had to sell them. But overall, the government does not want personal bankruptcy to become a barrier to you working, so they do not want to refuse you access to your equipment. It is quite a good component of Bankruptcy, but sometimes could be complicated. Therefore when it relates to tools of trade, you do not have to stress just contact us here at Bankruptcy Experts Wagga Wagga for some guidance.
People are always worried about just how Bankruptcy will impact their car. So the rule is that you can easily keep one car or motorcycle up to the value of $7,600.
This takes into consideration current value, as well as the equity. What does this mean? Well, equity deals with the amount of money you have actually put into the car, and just how much is on a loan. If you have bought a car for $10,000 without a loan, then the car can likely be sold for that quantity, and $10,000 could be raised to pay off your bankruptcy debts. However, if you got a vehicle loan for that quantity instead then there would be no advantage to selling your car.
How do you value your car? Simplest way is to just have a chat to a used car dealership and ask just how much they would offer you for it– that will present you a rough idea regarding how your motor vehicle will be affected by this Bankruptcy process. Then you just have to think about the value of your car loan or financing plan, and whether you are under or over the $7,600 threshold.
If your car is worth greater than these threshold quantities get some help, at Bankruptcy Experts Wagga Wagga we assist people work through their possibilities when it relates to cars.
The Family Property
Similar to with Bankruptcy and motor vehicles, the approach that can be taken to your residential property will certainly be dependent upon equity. In case there is no equity in the house, then there is no use in forcing you to sell it. If there is zero money to be earned by taking the house from you, then they are hardly ever going to bother. As an 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 maintain your home after insolvency.
The worst part about all of this though is that personal bankruptcy does not think about emotions or justifications– you will not merely have the ability to always keep your vehicle or house because you ‘need it’ or because you have a powerful emotional attachment. Bankruptcy may be cruel, but that is exactly why you should ensure you speak with the right people. Do not risk your family home by assuming or hoping you will have the capacity to keep it post-bankruptcy just because you have to dwell somewhere.
If you are stressed out over your home or any other aspect of this Bankruptcy Means Test, then call us at Bankruptcy Experts Wagga Wagga on 1300 795 575 if you want to know more about Bankruptcy and Houses or anything to do with Bankruptcy. We are here to truly help you. Visit our website for much more information, www.bankruptcyexpertsWaggaWagga.com.au.
We provide a Free- No Commitment Consultation so get in touch with us today 1300 795 575.