Your asset list needs more than the items you think a trustee will sell

Do not decide the answer while making the list

A hypothetical tradesperson preparing for bankruptcy advice lists a car and savings but leaves out tools because they expect to keep them. That omission makes the advice harder to give. Start with a complete and honest inventory. Whether an item can be retained is a separate question requiring the relevant facts, current rules and appropriate assessment.

Describe ownership accurately

Record the item, its location, who owns it and the evidence supporting that position. Distinguish personally owned equipment from leased items, company property and jointly owned assets. If ownership is uncertain, say so and collect the relevant documents. Avoid assigning an asset to someone else simply because they use it or because the purchase came from a shared account.

Understand why the full list matters

AFSA says assets must be declared when applying for bankruptcy and assets received during bankruptcy must also be declared. Its guidance identifies certain retained items and limits, while other assets may be sold by the trustee. Do not assume that a broad label such as work tools resolves the position for every item. Check the applicable current requirements with an appropriate adviser.

Source: AFSA: Consequences of bankruptcy

Separate estimates from supporting evidence

Record your estimate of value and its basis without presenting it as an independent valuation. In the hypothetical example, a tool's original purchase price may differ from its current condition and resale value. Keep finance statements and ownership documents with the list. Ask what additional valuation information is needed rather than obtaining unnecessary reports before the adviser has reviewed the circumstances.

Disclose changes instead of altering the picture

Tell the adviser about recent disposals, gifts or ownership changes and retain the records. Do not move assets to make an inventory look simpler or to keep them out of the process. If a correction is needed, make it transparently. During bankruptcy, direct questions about property and required reporting to the trustee rather than relying on an earlier informal expectation.

Use the inventory to compare realistic options

Take the list to a qualified adviser or free financial counsellor alongside your debts and income information. CRP can help organise the business context for that discussion. A complete inventory does not predetermine the outcome; it gives the person advising you the information needed to explain consequences and alternatives without relying on assets you have silently excluded.