What are the business tools?
Business tools are assets considered exempt according to the Bankruptcy Act because one uses them for a living. The creditors cannot require that these assets be confiscated and liquidated to meet the debts. In some countries, the total value of trade may be maintained through bankruptcy, in order to prevent false claims that personal assets are actually a tool of trade. The bankruptcy court determines what it qualifies for this protection and what not. The bankruptcy court orders that the debtor's liquidation to sell the assets before deleting the debt to pay off as much of the debt as possible. According to the law, debtors can retain some personal assets as well as any business tools.
This includes real tools, not assets. The jeweler can thus maintain jewelry tools, welding torches, polishes to opinion, etc., but they cannot maintain gems and expensive metals because they are assets. Computer programmers could retain their computer equipment along with things like they areMobile phones that could be used to communicate with clients. Whatever one uses for a living is protected by law.
The aim of protecting business instruments is to allow people to earn a living after bankruptcy. Takeover of all assets, including assets used to generate income, would create an unfair situation; The bankrupt person could not gain access to the loan to replace the tools for bankruptcy. In cases where the definition of "business instrument tool" is vague, the court must determine the fairest decision in the situation and protect the financial concerns of creditors without undressing the debtor the necessary things.
Generally, if the debtor can clearly prove that something is used by Profissionally is protected as a tool of trade. For example, suppliers need their trucks to visit jobs together with the equipment they do to perform work and music musiciansThey are their tools. Other assets fall under personal assets. Debtors who are worried about the ability to protect important assets may encounter a counselor to discuss the possibilities, even if it is important to realize that protection such as real estate registration as a homestead are only available to people who are not active loans to avoid situations where debtors try to retraactively protect assets.