Business as usual. We're open for face to face meetings, phone and video calls.

Is your businesses suffering? Contact Bankruptcy Advisory Centre for bankruptcy advice, liquidations, and administration. Your one stop shop.

Will I Lose My Car in Bankruptcy?

Will I Lose My Car in Bankruptcy?

All Movable Assets Are Considered During A Bankruptcy Process

During any Bankruptcy process, the appointed trustee is mandated by the law to consider all assets and sources of equity to pay creditors the money owed to them. This could include the sale of your car, which by definition is a movable asset.

The Bankruptcy process does however not stop or prohibit you from owning a car. There are some restrictions and exceptions for your protection when it comes to your vehicle and there are important considerations for us to take into account when we explore all possible avenues with our clients.

What If Your Car Ensures You Can Continue to Earn A Living?

The law ensures that all parties are treated fairly, which could apply to Bankruptcy and you owning a car as the insolvent party. The appointed Trustee will therefore weigh up all the considerations before an asset is attached.

The trustee will also consider if the car in question allows you to produce an economic income like going to and from work. If the Trustee discovers that you have public transport in easy reach between your home and place of work, then you might be required to give it up as there is no threat to your livelihood.

The Bankruptcy law was designed to protect all parties as best it can. This includes protecting society’s ability to recover from any economic downfall and to ensure that it can produce new growth in the future.

This same principle applies to all parties in a Bankruptcy process. The aim is first and foremost to service all the debt owed by the insolvent party, but to also protect them from permanent economic ruin.

What If You Owe on The Car?

If you have vehicle financing on your car, the appointed Trustee will carefully evaluate the remaining value on the car to see if there is sufficient equity left to help pay all creditors. The above circumstances mentioned earlier are also considered when it comes to your ability to earn an income.

In some instances, a Trustee can approach the credit provider with whom you financed the car to see if a better debt agreement can be negotiated to help you keep your car and receive a more satisfactory repayment arrangement. This can include a payment holiday or new terms that you can afford.

This is a “win win” situation because you get to keep your car and the credit provider limits their risk exposure and or potential loss if the Bankruptcy process was unable to raise enough equity.

Consider Getting Another Mode of Transport?

If you are able to use alternative means of transport without sacrificing your ability to make a living, then the Trustee will consider all the options available to you. One of them being public transport.

In other cases, the Trustee might find that it would be better to sell the car, pay off the remaining credit and ask you to procure a cheaper vehicle that could result in lower repayment installments and or insurance premiums. This will normally apply to insolvent cases where an expensive car’s monthly repayments and other costs are too high.

This will lower your exposure level and still allow you to own a means of transport that will enable you to continue earning an income and or start a new business.

Some examples we have seen also include people selling their cars and getting motorbikes or scooters as a way of commuting more affordably. All options must be explored and considered by all parties.

Do You Own More Than One Car?

One of the easiest solutions a Trustee will always look for will be to identify luxury or excess assets that can be sold first before attention needs to be paid to primary or crucial assets.

If you own multiple movable assets like cars, motorbikes, boats or caravans then the Trustee will want to attach those items first. If any of those secondary assets do not pose a threat to your ability to earn an income, then they will be deemed appropriate to sell.

This method affords you the opportunity to resolve your Bankruptcy process sooner as the required capital needed to service all your debt is achieved quicker and with minimal impact on you and your loved ones.


  • I made an appointment with Andrew after finding him on google. I was nervous and apprehensive about what to expect but he made the process of bankruptcy extremely uncomplicated and stress free, allowing myself the opportunity to get the fresh start I was so desperate for. Thank you Andrew I could not recommend you enough.

  • Making the decision to go bankrupt was not easy however once I had spoken to Andrew i felt all my anxiety disappear. Andrew does not judge you and he has an innate ability to put you at ease. He took care of the whole process for me again reducing the stress involved with completing paperwork.
    Thank you very much.

    Hayley Eastough
  • I will definitely recommend Andrew Bell to anyone contemplating bankruptcy. Don't wait! Andrew is there to help. With his knowledge, he can advise you of the best path to take and assist with the mind boggling paperwork.

    Best of all, he is there for you through your entire bankruptcy period. Get your life back, it's not as bad as you think. Thank you Andrew for lifting the burden and allowing me to move on.

    Karilyn Mahon
  • I saw Andrew for 'advice only' on possible bankruptcy due to a divorce. Left an hour later with the paperwork all done and feeling like a new person!

    Andrew was extremely welcoming and made me feel so comfortable with my decision to proceed immediately.

    This was the best investment I have ever made and cannot speak highly enough of Andrew. He doesn't just give excellent service his follow up afterwards is amazing. Thankyou Andrew you made my 'new' life so easy to achieve!

    Vicki Johnston
  • Andrew was very helpful in helping me through the bankruptcy process, as a single mother left with a massive debt from my ex and our previous marriage. I was struggling to keep my head above water on a week to week basis.

    Andrew made me feel at ease immediately and helped me every step of the way, he happily and professionally answered any and all questions I had before, during and after the process. Thanks so much for your help Andrew!

    Aisha Edmonds
  • Would highly recommend Andrew to anyone having financial difficulties. Andrew made me feel very comfortable - he took care of everything and keep in regular contact with me throughout the whole process.

    Service was fantastic and he also keep in regular contact with me when everything had been finalised Thanks Andrew! can now get my life back on track.

    Cassandra Walsh
  • Very prompt service and excellent source of knowledge and information, I highly recommend Andrew's service for a quick turn around of circumstances.

    Eve Damjanovich
  • Andrew put my mind at ease in one easy appointment. Very satisfied with the outcome and service provided. Highly recommend Andrew.

    Tracey Douglas
  • Andrew was a steadying hand with his advice.Showing that things aren't as bad as first thought nor any obstacle insurmountable. If you have questions needing answers, Andrew is the person to ask. Thanks for your advice Andrew.

    Shane Thompson
  • Andrew was very knowledgeable, caring, helpful and compassionate when I went and saw him. He made me feel that I wasn’t the loser and failure that I thought I was being. Even down to the box of tissues on the table.. which I needed. Highly recommend to go see Andrew if your struggling. There is life after!

    Joanne Parker
  • Andrew and his team do an excellent job of helping their clients with bankruptcy advice and it is a pleasure to work with him.

    Gareth Lane
  • Don't hesitate contacting Andrew, I was stressed, struggled sleeping through debt. Andrew put me at ease. He listened to my situation and we decided on my next move. Andrew is professional and easy to talk too. I would recommend highly to anyone who wants help to give him a call. I appreciate your support Andrew. Regards Brett.

  • Andrew has given me back my life!!! After living paycheck to paycheck, I didn’t know what to do. Until I made the big step and booked an appointment with Andrew. As soon as I left his office I felt a huge weight lifted!!!

    Deezy H
  • Andrew was prompt, organised, friendly and efficient with the processing of my documents and made everything very simple for me so I didn’t need to deal with the added pressure and stress. Thank you Andrew for allowing me to start afresh and getting it done within a matter of weeks.


Fill the form below to download our Free Expert Bankruptcy Guide

What you need to know before declaring bankruptcy