--- title: What property is protected in bankruptcy? description: What can your creditors take in bankruptcy. image: https://www.beyonddebt.com.au/hubfs/iStock-690243814_ccexpress.jpeg --- ![Top bar image](https://www.beyonddebt.com.au/hubfs/Assets%202019/Top%20bar%20image.jpg "Top bar image") ###### ![](https://www.beyonddebt.com.au/hubfs/Assets%202019/Tv.svg)Did you see us on TV? - [Click Here](https://www.beyonddebt.com.au/debt-help) ![Close](https://www.beyonddebt.com.au/hubfs/Assets%202019/Close.svg "Close") [![Logo](https://www.beyonddebt.com.au/hs-fs/hubfs/Assets%202019/Images/Beyond%20Debt%20black.png?width=560&height=128&name=Beyond%20Debt%20black.png "Logo")](https://www.beyonddebt.com.au) [![Logo](https://www.beyonddebt.com.au/hs-fs/hubfs/Assets%202019/Images/Beyond%20Debt%20white.png?width=560&height=128&name=Beyond%20Debt%20white.png "Logo")](https://www.beyonddebt.com.au) #### [![Phone](https://www.beyonddebt.com.au/hubfs/Assets%202019/Images/Button%20Copy.svg)**1300 284 091**](tel:1300%20284%20091) #### [![Phone](https://www.beyonddebt.com.au/hubfs/Assets%202019/Images/Button%20Copy.svg)![](https://www.beyonddebt.com.au/hubfs/Beyond%20Debt%20October2017/small-icon.svg)**1300 284 091**](tel:1300%20284%20091) [![Free Consultation](https://no-cache.hubspot.com/cta/default/2583772/02eddd09-66a0-4e61-9e59-63ae64bfd94a.png)](https://cta-redirect.hubspot.com/cta/redirect/2583772/02eddd09-66a0-4e61-9e59-63ae64bfd94a) #### [1300 284 091](tel:1300%20284%20091) - ##### [Eliminate Debt](https://www.beyonddebt.com.au/blog/topic/eliminate-debt) [## How to Get Out of Debt in 2026: The Australian's Step-by-Step Guide (And Free Budget Planner) ](https://www.beyonddebt.com.au/blog/take-control-of-your-debt) [Read Article](https://www.beyonddebt.com.au/blog/take-control-of-your-debt) - ###### [Bankruptcy](https://www.beyonddebt.com.au/blog/topic/bankruptcy) # [What property is protected in bankruptcy?](https://www.beyonddebt.com.au/blog/what-property-is-protected-in-bankruptcy) - ###### Ben Paris - ###### 04 Feb 2022 ###### LATEST ARTICLES - Bankruptcy [Back to blog](https://www.beyonddebt.com.au/blog) - Share - [**](https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fwww.beyonddebt.com.au%2Fblog%2Fwhat-property-is-protected-in-bankruptcy) - [**](https://www.twitter.com/share?url=https%3A%2F%2Fwww.beyonddebt.com.au%2Fblog%2Fwhat-property-is-protected-in-bankruptcy) - [**](http://www.linkedin.com/shareArticle?mini=true&url=https://www.beyonddebt.com.au/blog/what-property-is-protected-in-bankruptcy) A lot of people believe that if they file for bankruptcy the police will attend their property and take all their property. Leaving them with nothing but some clothes and a bicycle. These ideas stem from debtors prison which was a historically reality in England with people jailed for not being able to pay their debts. You could only leave debtors prison when your debts were paid so many people never left. Charles Dickens father was jailed for not paying a bakery 40 pounds.   Debts prisons were abolished in 1870 and the modern reality is vastly different. The Bankruptcy Act section 116 defines certain "Protected Property" that can't be touched by creditors in bankruptcy. 1. Normal household property All your normal house hold property is protected. Clothes, couches, washing machines, cups, saucers, are all protected. That being said if you have a Van Gough on the wall or a $20,000 handbag these will be sold. 1. Tools of the trade Tools used to earn a living up to a wholesale value up to $3800 can't be touched. This doesn't apply only to Tradies, it could also be photography equipment or baking equipment for example.  1. A Vehicle A car/motorbike/scooter used mainly for personal transport is protected up to a wholesale value of $8,150, this amounts to a car value of $16,000 retail. 1. Superannuation Your superannuation is protected from creditors. The only exemption to this is if just before bankruptcy you shove a huge amount of money into your super.  1. Money from a personal injury pay-out If you have money from a personal injury settlement, the money and anything you bought with it are protected. 1. Awards/Cultural Significant Items If you won a gold medal at the Olympics or received an Order of Australia award these are protected from your credits. ###### Ready to become debt free? #### Take the first step to a debt free future [Ready to become debt free?](https://info.beyonddebt.com.au/request-a-consultation) ### You might find these interesting - ##### [Bankruptcy](https://www.beyonddebt.com.au/blog/topic/bankruptcy) ## [Salary Sacrifice can make bankruptcy worse!](https://www.beyonddebt.com.au/blog/salary-sacrifice-can-make-bankruptcy-worse) - ###### Ben Paris - ###### 11 Apr 2022 - ##### [Bankruptcy](https://www.beyonddebt.com.au/blog/topic/bankruptcy) ## [What Happens to My Car in Bankruptcy?](https://www.beyonddebt.com.au/blog/what-happens-to-my-car-in-bankruptcy) - ###### Ben Paris - ###### 11 Mar 2022 - ##### [Bankruptcy](https://www.beyonddebt.com.au/blog/topic/bankruptcy) - ##### [Press Release](https://www.beyonddebt.com.au/blog/topic/press-release) ## [Morrison Government Throws Sole Traders Hospital Pass](https://www.beyonddebt.com.au/blog/morrison-government-throws-sole-traders-hospital-pass) - ###### Ben Paris - ###### 12 Apr 2021 - [Personal Finance Basics (126)](https://www.beyonddebt.com.au/blog/tag/personal-finance-basics) - [Handle Money (100)](https://www.beyonddebt.com.au/blog/tag/handle-money) - [Everyday Expenses (61)](https://www.beyonddebt.com.au/blog/tag/everyday-expenses) - [Affordable Living (50)](https://www.beyonddebt.com.au/blog/tag/affordable-living) - [Build Savings (33)](https://www.beyonddebt.com.au/blog/tag/build-savings) ## Ready to become debt free? #### Speak with one of our specialists to start your future [![About Beyond Debt](https://no-cache.hubspot.com/cta/default/2583772/e771166e-724a-4461-9ee9-fd819c4c0fe2.png)](https://cta-redirect.hubspot.com/cta/redirect/2583772/e771166e-724a-4461-9ee9-fd819c4c0fe2) [![Get Help](https://no-cache.hubspot.com/cta/default/2583772/8ac6a951-8425-44d9-91d4-0928fca0084e.png)](https://cta-redirect.hubspot.com/cta/redirect/2583772/8ac6a951-8425-44d9-91d4-0928fca0084e) #### [![Phone](https://www.beyonddebt.com.au/hubfs/Assets%202019/Images/Button%20Copy.svg)![](https://www.beyonddebt.com.au/hubfs/Beyond%20Debt%20October2017/small-icon.svg)**1300 284 091**](tel:1300%20284%20091) - ![Family-Owned-transparent-300x158](https://www.beyonddebt.com.au/hs-fs/hubfs/Assets%202019/Images/Family-Owned-transparent-300x158.png?width=115&name=Family-Owned-transparent-300x158.png) - ![pipa_logo_transparent_300w_100h](https://www.beyonddebt.com.au/hs-fs/hubfs/Assets%202019/Images/pipa_logo_transparent_300w_100h.png?width=151&name=pipa_logo_transparent_300w_100h.png) - ![Feefo](https://www.beyonddebt.com.au/hs-fs/hubfs/Feefo.png?width=115&name=Feefo.png) ##### Debt Help ##### Company ##### Resources Beyond Debt is a trading name of DCS Group Aust Pty Ltd. 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