Bankruptcy
Bankruptcy
A trustee is appointed over a bankrupt estate which investigates affairs. The trustee may sell assets and collect contributions to pay dividends to creditors, if applicable.
All assets at the time of bankruptcy and any valuable items received during the term of bankruptcy automatically become property of the trustee - your house, land, shares, business assets, vehicles and investments can be sold by the trustee.
You are released from most of the debts that are owed at the start of the bankruptcy. Creditors cannot recover any money from you after you are bankrupt - they lodge claims with your trustee instead.
If at anytime you fall behind with payments to your secured creditors (car payments etc), creditors may sell the secured item to recover their money, regardless of your bankruptcy.
