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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.
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.
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.
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.
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.
If you have money from a personal injury settlement, the money and anything you bought with it are protected.
If you won a gold medal at the Olympics or received an Order of Australia award these are protected from your credits.
Beyond Debt is a trading name of DCS Group Aust Pty Ltd. Australian Credit License: 382607. RDAA Number: 1126. PO Box 3074 Newstead, QLD, 4006.
DCS Group operates under a Limited Liability scheme approved under Professional Standards Legislation
