bankruptcy exemptionsOne of the most frequent questions I am asked when I meet with people for their free consultation is. What assets can you keep in a bankruptcy?

When you file for bankruptcy in Canada, certain assets are exempt from seizure by your bankruptcy trustee and these exemptions vary from province to province.

In Ontario the following assets are exempt:

  •    $5,650 worth of personal possessions (clothing, jewelry and other personal effects)
  •    $5,650 worth of motor vehicles
  •    $11,300 worth of furniture, appliances and other household goods
  •    $11,300 worth of tools of trade (tools and equipment used for job or business)
  •     Certain types of life insurance
  •     Most pension plans
  •     RRSP’s (except for any contributions made in the last 12 months)

What happens to your house?

I understand that your most important asset is their home, most people are surprised to find out that in many cases it is possible to keep your house when you file bankruptcy; in fact 1 in 4 people who filed bankruptcy with Hoyes Michalos last year owned a home.

If you have equity in your home, that equity would become an asset in the bankruptcy, so a lot of the time when you have equity in your home, bankruptcy may not be your best option, a consumer proposal may be the better option.

When you come in to meet with me in Barrie, I will look at all of your assets and let you know the ones that are exempt and what assets you can keep a bankruptcy. Also, I will go over all of the different options that you have to eliminate your debt and you can choose the one that best suits you. You can give me a call at 310-PLAN or 705-719-4948, you can also send me an email and I will book you in for a free consultation.

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