Any time individuals worry about Bankruptcy, they worry about how it will affect their day-to-day lives, and whether they will be able to keep their house, vehicle, tools, and other essential belongings.

What can I keep when I'm Bankrupt - The bankruptcy means test

Among the ways that we can figure this out is by utilizing the insolvency means test. It is something that we take our clients through to demonstrate to them how they may or may not be impacted, and what Bankruptcy will mean to them.

Personal and household items

Your valuables are always going to be a key aspect of concern with Bankruptcy in Australia as there is often an irrational concern that someone will come out to your house to snatch all your stuff away, repossess your couch, television, even the coffee machine. However this is never going to be the case with pure bankruptcy since typically they don’t care about these possessions. There are a few interesting exceptions though with Bankruptcy and belongings so if you have individual concerns about this make sure that you get a bit of support initially or get in touch with us here at Bankruptcy Experts on 1300 795 575.


With Bankruptcy you may be affected if you have pricey tools. The rules state that you may retain tools of trade up to a limit of $3,700. However remember that this is based upon ‘current cost’ therefore if you bought your tools for $8,000 5 years ago, they are likely to be worth far less these days. So it is worth thinking about just how much you would expect them to be worth, or how much you could receive for all of them if you had to sell them. But as a whole, the government doesn’t want insolvency to be a barrier to you working, so they do not desire to refuse you accessibility to your tools. It is quite a great component of Bankruptcy, but sometimes can be confusing. Therefore when it relates to tools of trade, you really don’t need to worry just contact us here at Bankruptcy Experts for some suggestions.


People are constantly troubled about just how Bankruptcy will affect their motor vehicle. So the rule is that you can easily retain one vehicle or motorbike up to the value of $7,600.

This takes into consideration current value, and also the equity. What does this mean? Well, equity deals with the amount of money you have essentially put into the automobile, and just how much is on a car loan. If you have purchased a car for $10,000 without having a loan, then the car can likely be sold for that quantity, and $10,000 could be raised to pay off your bankruptcy liabilities. Having said that, if you got a vehicle loan for that amount instead then there would be no benefits to selling your car.

How do you value your car? Easiest method is to just have a chat to a second hand car dealer and ask how much they might give you for it– that will present you a rough idea about how your vehicle will be affected by this Bankruptcy process. After that you just need to take into consideration the value of your car loan or financing plan, and whether you are below or over the $7,600 threshold.

If your car is worth greater than these threshold quantities get some support, at Bankruptcy Experts we assist people work through their options when it relates to cars.

The Family Home

Similar to with Bankruptcy and cars, the approach that can be taken to your home will depend on equity. In case there is no equity in your home, then there certainly is no purpose in forcing you to sell it. If there is zero money to be made by taking the home off you, then they are seldom going to bother. For instance if you own a home worth $400,000 and you owe the bank $400,000 then more than likely you will have the chance to maintain your residential property after insolvency.

The worst part about all this though is that bankruptcy does not take into consideration feelings or justifications– you will not merely be able to keep your car or residence because you ‘need it’ or because you have a strong emotional attachment. Bankruptcy may be harsh, but that is why you should make sure you speak to the right people. Do not risk your family home by assuming or wishing you will have the ability to maintain it post-bankruptcy because you have to dwell somewhere.

If you are anxious over your home or any other component of this Bankruptcy Means Test, then call us at Bankruptcy Experts on 1300 795 575 if you would like to know more about Bankruptcy and Houses or anything to do with Bankruptcy. We are here to truly help you. Visit our website for even more information,

We offer a Free- No Commitment Consultation so call us today 1300 795 575.