Any time individuals stress over Bankruptcy, they fret 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 belongings.
Among the ways that we can work out 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 impacted, and what Bankruptcy will mean to them.
Personal and household items
Your belongings are always going to be a key aspect of concern with Bankruptcy in Gold Coast because there is usually an illogical concern that someone will come along to your house to snatch all your stuff away, retrieve your couch, the television, even the coffee machine. But this is never going to be the case with pure insolvency since typically they don’t care about these valuables. There are a few interesting exceptions though with Bankruptcy and belongings so if you have individual worries about this make sure that you get some support first or contact us here at Gold Coast Bankruptcy Centre on 1300 795 575.
With Bankruptcy you may be affected if you have costly tools. The guidelines explain 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 nowadays. So it is worth thinking about how much you would anticipate them to be valued at, or how much you could obtain for them if you needed to sell them. But as a whole, the government does not want personal bankruptcy to become a barrier to you working, so they don’t want to refuse you accessibility to your tools. It is quite a good part of Bankruptcy, but sometimes might be complex. Therefore when it relates to tools of trade, you really don’t need to worry simply call us here at Gold Coast Bankruptcy Centre for some guidance.
People are always troubled about just how Bankruptcy will affect their vehicle. So the rule is that you can keep one car or motorcycle up to the value of $7,600.
This takes into account current value, as well as the equity. What does this mean? Well, equity deals with the amount of money you have essentially put into the vehicle, and just how much is on a car loan. If you have bought a car for $10,000 without a loan, then the car can possibly be sold for that amount, and $10,000 can be raised to pay off your bankruptcy liabilities. On the other hand, if you had a vehicle loan for that amount instead then there would be no benefit 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 ask how much they might give you for it– that will certainly present you a rough idea about how your vehicle will be impacted by this Bankruptcy process. At that point you just need to take into consideration the value of your vehicle loan or financing plan, and whether you are under or over the $7,600 threshold.
If your car is worth greater than these threshold amounts get some assistance, at Gold Coast Bankruptcy Centre we help individuals work through their possibilities when it relates to cars.
The Family Property
Much like with Bankruptcy and vehicles, the approach that will be taken to your residential property will be dependent upon equity. In case there is no equity in your home, then there certainly is no purpose in forcing you to sell it. If there is absolutely no funds to be made by taking the house from you, then they are seldom going to bother. As an example 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 maintain your home after insolvency.
The worst part about all of this though is that bankruptcy does not take into account feelings or justifications– you will not simply be able to manage to keep your vehicle or residence because you ‘need it’ or considering that you have a powerful emotional attachment. Bankruptcy can be cruel, but that is why you need to ensure you speak with the right people. Do not risk your family home by assuming or hoping you will have the capability to keep it post-bankruptcy because you have to dwell somewhere.
If you are worried over your home or any other part of this Bankruptcy Means Test, then call us at Gold Coast Bankruptcy Centre on 1300 795 575 if you wish to know more about Bankruptcy and Houses or anything to do with Bankruptcy. We are here to really assist you. Visit our website for even more information, www.goldcoastbankruptcycentre.com.au.
We provide a Free- No Commitment Consultation so get in touch with us today 1300 795 575.