Bankruptcy Regulations 1996

PART 6 - ADMINISTRATION OF PROPERTY  

Division 2 - Property available for payment of debts  

REGULATION 6.03   HOUSEHOLD PROPERTY  

6.03(1)    
For the purposes of subparagraph 116(2)(b)(i) of the Act, household property of the bankrupt specified in this regulation is household property to which subsection 116(1) of the Act (which deals with property divisible among the creditors) does not extend.

6.03(2)    
Subsection 116(1) of the Act does not extend to household property (including recreational and sports equipment) that is reasonably necessary for the domestic use of the bankrupt's household, having regard to current social standards.

6.03(3)    
In particular (but without limiting by implication the generality of subregulation (2)), subsection 116(1) of the Act does not extend to property of the following kinds:

(a) in the case of kitchen equipment, cutlery, crockery, foodstuffs, heating equipment, cooling equipment, telephone equipment, fire detectors and extinguishers, anti-burglar devices, bedding, linen, towels and other household effects - that property to the extent that it is reasonably appropriate for the household, having regard to the criteria mentioned in subregulation (4);

(b) sufficient household furniture;

(c) sufficient beds for the members of the household; and

(d) educational, sporting or recreational items (including books) that are wholly or mainly for the use of children or students in the household;

(e) 1 television set;

(f) 1 set of stereo equipment;

(g) 1 radio;

(h) either:

(i) 1 washing machine and 1 clothes drier; or

(ii) 1 combined washing machine and clothes drier;

(i) either:

(i) 1 refrigerator and 1 freezer; or

(ii) 1 combination refrigerator/freezer;

(j) 1 generator, if relied on to supply electrical power to the household;

(k) 1 telephone appliance;

(l) 1 video recorder.

6.03(4)    
For the purposes of deciding whether property, other than property of a kind mentioned in paragraphs (3)(b) to (l) (both inclusive), is property to which subregulation (2) applies, regard must be had to the following criteria:

(a) the number and ages of members of the bankrupt's household;

(b) any special health or medical needs of any of those members;

(c) any special climatic or other factors (including geographical isolation) of the place where the household residence is located;

(d) whether the property is reasonably necessary for the functioning or servicing of the household as a viable and properly run household;

(e) whether the costs of seizure, storage and sale of the property would be likely to exceed the sale price of the property;

(f) if paragraph (e) does not apply - whether for any other reason (for example, costs of transport) the sale of the property would be likely to be uneconomical.

6.03(5)    
The preceding provisions of this regulation do not prevent subsection 116(1) of the Act from extending to antique items.

6.03(6)    
For the purposes of subregulation (5), an item is taken to be antique if, and only if, a substantial part of its market value is attributable to its age or historical significance.