What are assets?
Assets are the things that a debtor owns, such as money, savings, property, vehicles, life policies, jewellery and shares. Any money or assets due to the debtor, such as business debts, also transfer to the trustee.
The debtor will normally be allowed to keep essential items needed for day to day living, such as clothes, furniture, household linens, floor coverings, anything used for cooking or cleaning, educational items and children's toys. They can also keep any tools they need for their trade, up to a value of £1,000.
During the bankruptcy a debtor must inform the trustee about any new assets they acquire which may include money or an inheritance.
If a debtor has sold, given away or disposed of any assets within the 5 years before their bankruptcy for less than their full value, the trustee may ask the sheriff to have this action changed and the assets (or their equivalent value) to be given to the trustee for the benefit of the creditors.
The trustee can sell all or some of the debtor's assets in order to pay the cost of the bankruptcy and the debts.