Tools Of Trade Legal Meaning and Definition

Here is a simplified definition of the legal term Tools Of Trade.

Tools Of Trade (noun)

The term "Tools Of Trade" refers to the various instruments or equipment utilized by an individual in their respective profession. This could include machinery, devices, or instruments that can be operated individually without the need for additional labor. In the context of bankruptcy law, these tools of trade are typically exempt from creditor claims, as they serve as the primary source of income for the individual in question, for their own livelihood as well as the repayment mechanism to creditors.