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Will I lose my assets?

The Bankruptcy Act protects certain assets and as such these will not be lost in bankruptcy. The types of protected assets include:

  • essential household furniture and personal effects
  • tools of trade (up to the value of $3,250)
  • a car as (up to the value of $6,500)
  • superannuation policies (up to the reasonable benefit limit)

Apart from the above, anything of value that you own at the date of bankruptcy and any assets acquired by you before your discharge from bankruptcy including lottery wins and any inheritance will be included in the bankrupt estate. This will also include your interest in the family home, land, money in bank accounts, vehicles exceeding the prescribed value, stocks and shares, antiques and other personal property of saleable value.

As a bankrupt, you loose the ability to sell or deal with most of your assets or items of value. Only the Trustee in Bankruptcy or a secured creditor is able to do deal with your assets of value. The trustee’s role is to dispose of your property for the benefit of creditors.

Frequently Asked Questions