Confused about what assets a bankruptcy can keep? The assets that you can keep are otherwise known as indivisible assets. These bankruptcy assets are protected from the trustee and most commonly include the following.
• Household Items – This includes all necessary household items such as furniture, bedding, laundry equipment, exercise equipment, clothing and teaching materials. It is important to emphasize the word that a bankruptcy with multiple televisions or expensive antique furniture is not protected from trustee recovery.
• Personal items – these items may be photographs, wedding rings or other items of sentimental value. However, as a bankrupt you must be aware that these items will need to be disclosed to your trustee and in some cases certain items will require approval from your creditors before they can be retained as indivisible bankruptcy assets.
• Motor Vehicles – these are vehicles with an equity value of US$6,850 or less. The vehicles must primarily be used for transport purposes. The equity values of the vehicles are updated regularly by Insolvency Trustee Services Australia.
• Trading Tools – As a bankrupt, you can keep tools up to $3,400 to help you generate income. The values of the trading instruments that a trustee may keep are updated regularly by Insolvency Trustee Services Australia.
• Retirement Fund – Generally, funds held in a bankrupt’s retirement account are protected from the trustee. However, if monies were deposited into your retirement account prior to the bankruptcy date, the deposited amount is available to the trustee of your bankruptcy estate for realization.
• Life Insurance Policies for You or Your Spouse – If you or your spouse receive a life insurance payout after the date of your bankruptcy, that payout is protected from recovery by the trustee.
• Personal Injury Compensation – monies received from you for Personal Injury Compensation are exempt from the Trustee for recovery. In addition, the assets you buy with that money are also exempt from trustee confiscation.
• Assets held by you on behalf of someone else – if you held assets on a fiduciary basis for someone else, e.g. B. your child’s education fund or your child’s bank account, the funds are exempt from the trustee for recovery.
We hope this article has given you a clearer understanding of what assets fall into this category of non-divisible bankruptcy assets.