PART 1 OF 4.
Assets are anything of value you own when you become bankrupt plus anything you buy or receive before the end of your bankruptcy.
Some assets are exempt, which means you may keep them. Some assets are non-exempt or divisible, which means your trustee may sell them for the benefit of your creditors.
ASSETS YOU CAN KEEP:
-most ordinary household or personal items.
-tools used to earn an income, up to a set limit.
-vehicles cars or motorbikes, where the total value of the vehicles minus the sum owing under finance is less than a set limit.
-most funds held in registered superannuation funds and payments from regulated superannuation funds received after you have become bankrupt.(note superannuation payments received prior to bankruptcy are not protected).
-life assurance policies in respect of yourself or your spouse or proceeds from such policies received after your bankruptcy.
-compensation for a personal injury. eg. injury to you from a car accident or workers compensation.
-assets to the extent that they were bought with your personal compensation money or certain government grants (protected monies).
-an asset held by you in trust for another person. eg child bank account.
-awards of a sporting, cultural, military or academic nature made to you, such as medals or trophies and claimed as having sentimental value may be exempted by a vote of creditors.
Most of the people claim the bankruptcy because they have more debt than they can ever hope to repay.....And because they do not want to be taken this to court. And you have no way to ever repay your debts,then bankruptcy may be an good option for any one....Declaring Personal Bankruptcy
ReplyDeleteUnfortunately Bankrupcty for some people is not really an option in the true sense.
ReplyDeleteYou must also remember that Voluntary Bankruptcy costs money, if you have no assets then you will end up in court sooner than you think.
You need to first know the rules of bankruptcy.
Use all resourses to get the best result for that individual person.
No one rule will suite all aproach can work.
Professional's are needed. You can't do it alone.