Keeping Your Car in Bankruptcy. You don't have to lose your car when you file for bankruptcy. The Value of the car is the first point of consideration. Each year, the Australian Financial Security Authority (AFSA) sets the maximum value for a vehicle you can own during bankruptcy. In 2019, that amount is $7,900. 00. If the car is joint them its $ $ 15,800.00. This amount is based on what a dealer would pay to buy the vehicle from you, not the amount you would pay to buy the car. This calculation also takes into account how much is still owing on your car loan.For example, if you own a car that is worth $30,000 and you still owe $25,000, the calculated value would be $5,000. This would fall under the limit, allowing you to keep your vehicle. If, on the other hand, you only owed $5,000 on that $30,000 vehicle, the value would be $25,000. In this case, you may be required to sell the car to cover your outstanding debts. You would, however, still be eligible to keep the $7,900 set out in the limit so that you could purchase a less expensive car. Joint Ownership of Car. In some cases, you may own a vehicle in partnership with someone else. Only your own portion of the vehicle, value would be used in determining whether or not you are allowed to keep it. If you are not allowed to keep your share of the car, either the other owner would have to purchase your portion from you or you would be required to sell the vehicle and split the proceeds. |