Cant delete tool in this script. How do you delete tool?

Hello, I have made a script which detects when a player has died and removes all of their items. I also have a shop system which keep information about what the player owns, all of that information is located in game.ServerStorage.PlayerTools with each player having their own folder named after them.

here it is:

character:WaitForChild("Humanoid").Died:Connect(function()
			local Item = player.Backpack:FindFirstChildOfClass("Tool")
			print(player.Name .. " has died!")
			while wait() do
				if hum.Health == 100 then -- Waiting for player to respawn
					player.Backpack:ClearAllChildren()
					
					break
				else
					game.ServerStorage.PlayerTools[player.Name]:FindFirstChild(Item):Destroy()
					player.Backpack:ClearAllChildren()
				end
			end
		end)

I keep getting the error: attempt to index nil with 'Destroy'. I do not know why or understand what this means.

The error means that the compiler can't find what game.ServerStorage.PlayerTools[player.Name]:FindFirstChild(Item) refers to, so it's nil.

Try printing Item and see if it exists in PlayerTools[player.Name] via the explorer.

Also, waiting for the humanoid health to be 100 doesn't work, because when a player respawns they get a new character instance (and everything in the character, like the humanoid).

local character = player.CharacterAdded:Wait() would yield the script until a new character is added and assign it to the variable 'character' (aka wait until they respawn)

This is an efficient rewrite & fix to the asker's problem. The details are denoted in the post's comments.

--###----------[[SERVICES]]----------###--
local ServerStorage = game:GetService("ServerStorage")

local Players = game:GetService("Players")



--###----------[[VARIABLES]]----------###--
local ToolRepository = ServerStorage.PlayerTools



--###----------[[LOGIC]]----------###--
Players.PlayerAdded:Connect(function(Player)
	---------------
	local Backpack = Player.Backpack
	---------------
	Player.CharacterAdded:Connect(function(Character)
		---------------
		local Humanoid = Character:WaitForChild("Humanoid")
		---------------
		Humanoid.Died:Connect(function()
			Humanoid:UnequipTools()
			---------------
			local Tools = Backpack:GetChildren()
			---------------
			for _, Tool in pairs(Tools) do
				if not (Tool:IsA("Tool")) then continue end
				---------------
				local StoredTool = ToolRepository[Player.Name]:FindFirstChild(Tool.Name)
				if (StoredTool)
					StoredTool:Destroy()
				end
			end
			---------------
			Backpack:ClearAllChildren()
		end)
	end)
end)

####The solution you seek is: :FindFirstChild(Item.Name).

Thank you everyone who replied and helped but unfortunately all of these solutions didn't work or had something wrong. I have came up with my own solution:

game.Players.PlayerAdded:Connect(function(player)
	
	local Character = player.CharacterAdded:Wait()
	
	Character.Humanoid.Died:Connect(function()
		local ItemInBackpack = game.Players[player.Name].Backpack:FindFirstChildOfClass("Tool")
		print(ItemInBackpack)
		local actualItem = tostring(ItemInBackpack)
		local PlayerTools = game.ServerStorage.PlayerTools[player.Name]
		
		if PlayerTools:FindFirstChild(actualItem) then
			print(actualItem.." was found in your folder!")
			PlayerTools:FindFirstChild(actualItem):Destroy()
			if game.Players[player.Name].Backpack:FindFirstChild(actualItem) then
				game.Players[player.Name].Backpack:FindFirstChild(actualItem):Destroy()
			else
				print("nothing was found!")
			end
			
		else
			print("nothing was found!")
		end
		
		
		
	end)
	
end)