Licensed Trustee in Bankruptcy - Serving Clients Throughout British Columbia

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Frequently Asked Questions

What Assets Can I Keep If I File For Bankruptcy?

<p>Any creditor, who you have given assets to as collateral for a loan, will take priority over these exemption rules.</p>

<p>Any assets you own over and above your exemptions must be sold for the benefit of your creditors. Our Trustee will often make arrangements for you to retain these assets if you do not wish to give them up, provided that you compensate the creditors by providing the Trustee with the equivalent amount of money by way of monthly payments.</p>

<p>The Provincial Government determines what assets you may retain if you file for bankruptcy. The list, commonly known as “exemptions” is contained in the “Court Order Enforcement Act” and Regulations.</p>

<p>In Layman’s terms these exemptions are:</p>

<ul> <li>Necessary clothing and medical equipment,</li> <li>Household furnishings and appliances with a market value to a maximum of $4,000,</li> <li>A vehicle with equity under $5,000 (reduced to $2,000 for maintenance debtors as defined by the Family Maintenance Legislation), per person,</li> <li>Tools or other personal property that are used for a person to earn income from their occupation,</li> <li>Equity in a principal residence of $9,000 per person ($12,000 each in the Lower Mainland and Capital Region areas).</li> </ul>

<p>These exemptions generally apply to each adult person. Ownership of vehicles and real estate is determined by title documents. Other assets would generally be considered 50/50 in a marriage or common law relationship unless evidence shows otherwise.</p>

<p>E. & O. E.</p>

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DISCLAIMER
All of the information on this website is provided as general information to those seeking general answers to their questions.

This information should not be construed as professional advice.

Every insolvency situation is different and the outcome of each will very depending on its unique circumstances.

Do not rely on this information, or take any steps which are based upon this information without first seeking professional advice.

To obtain specific professional advice a questionnaire must be completed and a personal evaluation conducted by our Trustee.