Most of us do not know what you lose in bankruptcy and what you keep. Filing for bankruptcy involves a lot of unknown issues and we can guide and explain what you lose and what you keep. We can explain the issues in bankruptcy, the process and even offer alternatives. Call us today at 905‑721‑7506, for a free and confidential conversation.
What you Lose in Filing for Bankruptcy
When you file for bankruptcy some of your possessions you can keep, some must be forfeited.
Your Assets When Filing for Bankruptcy
What’s Kept in Bankruptcies
In a bankruptcy in Ontario you can keep;
- All personal clothing
- Household furniture up to a value of $13,150.00
- Tools of the trade up to a value of $11,300.00
- Your vehicle if the equity is less than $6,600.00
- If the equity in your home does not exceed $10,000.00, the home is exempt
- Certain RRSPs
- Certain life insurance policies
- Pension plans
These are basic exemptions, but it is important to have a Trustee explain to you what each one means and how it will be applied in your situation.
Bankruptcy and Tools of Your Trade
Tools of the trade are tools or equipment you require to perform your duties at work such as computers, hand tools etc, these are not things that you lose in bankruptcy. The bankruptcy process allows you to keep things that are used to help or create an income.
If you require a car for work or to get to work, the vehicle is excluded in thing you lose in bankruptcy if the value of the vehicle is under 6,600 dollars. Where the vehicle is worth more than this or there are loans outstanding the vehicle may have to be surrendered as part of the bankruptcy.
Assets lost in Bankruptcies
Certain investments do not have an exemption such as GIC’S and tax free savings accounts. You don’t necessarily need to worry about losing assets.
We will work with you to figure things out. If you have an asset valued at more than the exemption limit, you may be able to keep it by paying the difference into your bankruptcy.
This will be discussed at length with your trustee as each situation is different.
Questions about Filing for Bankruptcy
If you’re considering filing for bankruptcy, the first step is to call and arrange an appointment with the Licensed Insolvency Trustee. The trustee will discuss what debts you have, what assets you own, what you lose in bankruptcy and offer you a solution is right for you. We can get you out of debt today
There is no charge for the initial appointment to discuss your options, call us at 905‑721‑7506.
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This site is for information only and is not meant to replace qualified legal advice by a Licensed Insolvency Trustee the writers shall not be held responsible for any information that may be incorrect or out of date in regards to What You Lose in Bankruptcy and getting out of debt. The owners of this website recommend that anyone wishing to learn about how a trustee can deal with your financial issues should contact our office.