Join our mailing list to stay informed!
Posted by Revive Financial on Apr 6, 2016 12:00:00 AM

When you declare bankruptcy, you are wiping as much debt as you can from creditors to whom you owe money. Your bankruptcy trustee will act as an in-between in this compromise and help you settle your debts by selling or transferring your assets to the creditors. It’s a common myth that if you declare bankruptcy, you’ll lose everything you have. In fact, quite a few of your assets are protected, and your trustee should work on your behalf to get you in the best financial position through the bankruptcy process.

Assets You Can Keep

  • Most personal household items, such as furniture
  • Motor vehicle/s up to the value of $7,500 (indexed amount) you use primarily as means of transport (excluding any finance owing on the vehicle/s) section 16 of the Bankruptcy Act
  • Any tools of your trade up to the value of $3,650 (indexed amount) you use to earn an income (s 116 of the Act)
  • Assets held on trust (e.g. a family trust or child’s bank account)
  • Life insurance policies
  • Compensation you received from a personal injury claim, and any assets you bought with that compensation
  • Your life insurance policies (as well as your spouse’s), and any proceeds you received from these policies after you were declared bankrupt
  • Awards with sentimental value, such as sporting and cultural medals or trophies
  • Most balances and payments you received from regulated superannuation funds on or after the date you were declared bankrupt.

Assets You Will Likely Have to Sell

  • Any house or land you own (although you may get to keep your family home in some circumstances)
  • Stocks and shares
  • Valuable furniture and jewellery
  • Gifts and inheritances received under a will
  • Motor vehicles and tools of your trade that go over the threshold limit.

Your bankruptcy trustee will help you determine exactly what you can keep, and assist you in the process of selling qualifying assets. Bankruptcy is not the end of the world, even if you lose valuable assets. It’s important to prioritise regaining financial stability over existing assets.

Our qualified staff at Revive can go over all of your options with you after a free debt assessment. If you reach a Part IX (9) Debt agreement or Part X (10) Personal Insolvency Agreement, you may be able to avoid losing assets to the extent of declaring bankruptcy.

Speak to a registered bankruptcy trustee today to learn more about your options for dealing with personal insolvency. Call us at 1800 534 534 or send us an enquiry.

For more information on bankruptcy, check out or bankruptcy page here

Is-Your-Business-In-Financial-Distress

Topics: Bankruptcy, Personal Debt

How Can We Assist You Today?

Personal Debt Icon Personal
Business Debt Icon Business
Please select an assistance option to continue.

Types Of Unsecured Debts

Credit Card Icon Credit/Store Cards
Personal Loan Icon Personal Loan
Pay Day Loan Icon Pay Day Loan
Tax Debt Icon Tax Debt
Disconnected Utilities Icon Utility Bill
Other Debts Icon Other
Please select at least one type of unsecured debt.

Your Business Structure

Sole Trader Icon Sole Trader
Partnership Icon Partnership
Company Icon Pty Ltd Company
Tax Debt Icon Trust
Please select at business structure to continue.

Unsecured Debt Amount

$8,000
$1,000
$100,000+

Business Debt Amount

$100,000
$10,000
$1,000,000+

Take Back Control Today!

First Name

Last Name

Email

Phone Number

Phone number must be 10-digits long and begin with a 0. (e.g. 04 1234 5678)

Post Code

Post code must be 4-digits long (e.g. 4567)

Some of your details appear incorrect.
Please update the highlighted fields and re-submit.

Congratulations

You’ve taken the first step to steer your business back to viability

Let’s keep the momentum going, take the second step by linking your Xero account now.

Congratulations

You've taken the first step to becoming debt free

Let's keep the momentum going, take the second step now and complete the assessment form.

By submitting this form you acknowledge that you have read and accept our Privacy Policy