Bankruptcy, Assets and Work
In the current difficult financial times, many people are finding themselves faced with bankruptcy.
If you go bankrupt what can you keep?
The bad news is that on being declared bankrupt, your “divisible property” vests in your bankruptcy trustee. You can no longer deal with the property.
The good news is that not all property falls into the category of “divisible property”.
If you go bankrupt you can keep:
- clothing, personal effects and household items;
- tools of trade currently to the limit of $3,650.00 in value;
- a motor vehicle or motorbike used for transport provided the equity in the vehicle does not exceed a current threshold of $7,500.00;
- certain superannuation and insurance policies.
If you go bankrupt what happens with work?
The bad news is that if you have an interest in a business, then that interest vests in your trustee. Bankruptcy dissolves any partnership you have and you cannot act as a company director.
The good news is that you can earn an income. If the income exceeds a certain threshold, you must make a contribution to the bankrupt estate. This amount commences once the income approaches $75,000.00, but is also impacted by the number of dependants that you support.
Going bankrupt can have a significant impact on your life and may not be the best option.
If you find yourselves in financial difficulty, QLD Law Group can assist you at this difficult time to find the best option. To get assistance, simply click here