Does bankruptcy mean I lose everything?
For most people, the value of furniture, personal property and household goods are well within the exemption levels permitted by each province. In other words, the Trustee will not seize your assets, unless the resale value (usually close to the garage sale or online classifieds value) is above these thresholds:
In Ontario, the following values apply:
• Household Furniture valued to a maximum of $11,300.00
• Personal possessions (clothing etc.) to a maximum value of $5,650.00
• Tools of Trade to a maximum value of $11,300.00
• A car or truck to a maximum value of $5,650.00
• Certain life insurance policies and pensions
• Farmers tools to a maximum of $28,300.00
If the value of your property is higher than the exemptions given, most commonly with a car or truck, you will be required to pay the difference, not the full value, to the Trustee.
Please note that if you are self-employed in Ontario, your car or truck can sometimes also be considered as a Tool of Trade, which increases their exemption from $5,650.00 to $11,300.00. It is also possible to keep two vehicles – the first vehicle exempt, as a personal vehicle, the second exempt as a business vehicle.
Contact Rumanek & Company Ltd. for more information on bankruptcy in Ontario and debt solutions. Please fill out the bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt and bankruptcy in Ontaio for more than 25 years.
Will my spouse’s assets be held in trust if I file for bankruptcy? Part 2
Will my spouse’s assets be held in trust if I file for bankruptcy?