Bankruptcy and Your Assets
A person subject to bankruptcy surrenders any possessions of value, including any interest in their home. Control of everything they own passes to the Trustee.
Items excluded from Bankruptcy
It is only reasonable that you be allowed to keep essential items and are not impeded from earning a living. Items which can to be excluded from bankruptcy include:-
- Household items essential for basic domestic needs. Eg, Cloths, Furniture, TV etc.
- A modest vehicle depending on circumstances.
- A residential tenancy.
- Items needed for trade or employment such as tools and computing equipment.
- Money held in pension funds (not in all cases)
- Money obtained from a student loan, if a balance of the loan remains payable.
For information about property see – Bankruptcy & Your Home.
For information about cars see – Bankruptcy & Your Car.
Assets obtained or received during bankruptcy
Any assets or monies obtained from any source whilst serving bankruptcy (ie before discharge) may be claimed as part of the bankrupt’s estate by the Trustee. If is an offense not to disclose such information. This can include.
- Anything bequest in a will, for example a property.
- Something of little value at the time of the bankruptcy order, but rising in value before bankruptcy discharge.
- Claims made against another person through court proceedings.
- Any other windfall.
If you know your are to be the benefactor of a will, you may be well advised to get that will changed to the name of an non-serving bankruptcy until you are discharged from bankruptcy.