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What Assets Can I Keep If I file for Bankruptcy in Australia?

The fear of bankruptcy is threatening. Many people don’t face it more than once in their lives, and when they do, they think of it to be life threatening. Bankruptcy does not mean that you happen to lose everything you can possibly own. There are several myths and written laws about the process. It is a legal process and it refers to personal failure which causes damage to the debtor’s mental stability as well as his personal inheritance. The intimidating process can be terrifying but filing for bankruptcy can alleviate the horror to an extent and here is the list of things, you will actually lose and can keep when you file for bankruptcy in Australia.

‌You don’t lose your household items and personal belongings. Owing to these things being yours, nobody can even touch them without your permission. There’s a phobia amongst people that some officers might come to their residents and seize everything and start throwing things out of their place and create chaos. But this never really happens because your possessions aren’t of crucial concern to them. However, if you are still doubtful, you must hire some bankruptcy professionals to make sure that your belongings are safe with you.

‌Trading tools are one of the essential belongings and the owner’s right to access to them in his state of insolvency is quite questionable since the rules of the country state that they can secure those tools up to a restriction of $3,750. However, it has to be according to the current market price. The authorities do not allow bankruptcy to be an obstacle in the person’s business thus they don’t stop you from using your tools of trade.

‌The next thing, a person worries about the most is the vehicle, i.e. his car to be precise. One can only gain back either his bike or only one motor vehicle up to an amount worth $7,900. It must reflect its current worth and equity. But, if you’ve bought your vehicle on loan then it would be insignificant to sell it but if you’ve bought it making the whole payment, you might sell it and get the exact sum equivalent to its cost which will help in reliving you from the bankruptcy debts. You might consult a second-hand car dealer who might tell you the estimate value, he can offer in exchange for the car so that you can make sure that it is crossing $7,900 in order to make you legally capable of paying off your liabilities.

‌In case of insolvency, the case with land/house is same with that of cars, i.e. equity is an important factor. And again, if there’s no equity, it will be useless to sell your house. But, if you your bank balance is equal to the worth of the property, you own then you will be able to recover easily after your state of bankruptcy comes to an end.Bankruptcy is really cruciating because you have to give up on certain things you own even if you have your personal feelings and sentiments attached to it. Bankruptcy never takes human emotions into consideration. You should be wise enough to make smart decisions during tough times. Make sure you overcome the anxiety and not end up mortgaging or selling your own home to get out of the situation because the post effects might be overwhelming and destructive. Remember that there is a world beyond your bankruptcy, and that you need to rebuild your own life, even if it means that this will have to be a simpler version of what you were used to.

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