You try to defend against a dragon with: A wooden shield, hopes and prayers. Your GM has decided that what you have left are just prayers, your shield is destroyed, what it remains are just ashes, give the shield card to your GM.
When your GM decides that a certain piece of Gear has reached such a breaking point that no amount of Spells, nor Forging can Repair it, that piece of gear is Destroyed, give the Equipment card to your GM.
As a GM you should give back some or all SoC • Discord Bot - Thread • NEW CAMPAIGN back the Equipment previous owner, over the course of some sessions.
(Optional Rule) — Leave it to Fate:
Every time an equipment gets Damaged, make the owner roll a d20, if the result is a critical failure, the Equipment is Destroyed.