Bankruptcy & personal insolvency

Will I lose my car?

In bankruptcy, you can keep a vehicle to an amount that the government (AFSA) indexes.

You can keep a motor vehicle that is your primary means of transportation if its value is less than the statutory threshold, currently $9,400. This amount is updated each financial year by AFSA, click here to check current amounts.

Where the value of the vehicle exceeds the statutory threshold, the bankruptcy trustee will be entitled to the value of the vehicle above that threshold. Sometimes, that will require sale of the vehicle.

Disclaimer

The enclosed information is of necessity a brief overview and it is not intended that readers should rely wholly on the information contained herein. No warranty express or implied is given in respect of the information provided and accordingly no responsibility is taken by Worrells or any member of the firm for any loss resulting from any error or omission contained within this fact sheet.

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