Understanding What Happens to Assets During Bankruptcy
The process of Bankruptcy in Australia involves selling a person’s assets to repay their creditors. This is known as the “realisation of assets.” When an individual declares Bankruptcy, their assets are transferred to a trustee responsible for selling them and using the proceeds to repay creditors.
Some assets that may be sold during Bankruptcy include property, vehicles, jewellery, and other personal belongings. Sometimes, the trustee may also sell a person’s business assets if they are self-employed. However, some assets are protected and cannot be sold during Bankruptcy. These include essential household items, tools of the trade, and superannuation in most cases.
Bankruptcy Guide Introduction – What assets can I keep in Bankruptcy?
The bankruptcy process is governed by the Bankruptcy Act 1966 and administered by the Australian Financial Security Authority (AFSA).
To be declared bankrupt, an individual must either owe a debt of at least $5,000 or be unable to pay it. Or they must be unable to pay their debts as they fall due. An individual or one of their creditors can file for Bankruptcy.
It’s important to remember that realising assets is to repay creditors as much as possible, not to punish the individual who has declared Bankruptcy. We can answer questions such as “Does the trustee check your bank account?” or “Can jointly owned property be seized?” or “How long do bankruptcies last?” The trustee will work with you to sell assets to maximise the return to creditors, but this may not always result in the best outcome for you as the individual who pays for bankruptcies.
Need more information about Assets During Bankruptcy in Australia?
“Bankruptcy in Australia involves the realisation of assets, which consists in selling a person’s assets to repay their creditors. Understanding this process’s consequences is essential, and you will be on the national personal insolvency index.
It is important to seek professional advice before deciding to declare Bankruptcy.
Our team of experts can guide you through bankruptcy laws and help you understand what steps you need to take to regain financial stability. Don’t let debt control your life; schedule a free consultation with us today and start on the road to economic recovery.”
Andrew Bell Bankruptcy Advisor
If you seek advice on Bankruptcy Law Changes and procedural guidance in Perth, Brisbane, Melbourne, Sydney or anywhere around Australia. We can help you make informed choices before selecting your best options. Get a complimentary first consultation by calling 1300 887 210. We can help you with questions about bankruptcy laws in Australia.
Our fees start from $850, offering you exceptional value for our professional services. Contact us now to speak with one of our experienced bankruptcy specialists, and let us help you get back on track with a fresh start.
Andrew Bell Bankruptcy Advisor
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With over 30 years of experience in debt solutions and bankruptcy in Australia Andrew can find a solution for you.
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