What happens to my assets in Bankruptcy?

What happens to my assets?What happens to my assets in Bankruptcy?

Upon declaring bankruptcy assets ‘that are not exempt or otherwise secured to a lender ( eg. car loan, mortgage on house,etc.) vests to the Trustee.  Other assets acquired during the period of bankruptcy, such as lottery winnings or inheritance from a deceased estate, also vests to the Trustee.

The law, however, provides that you may retain certain property, including personal effects, such as necessary clothes and household furniture; property used in earning income, provided the value of the property is less than an indexed amount; property used as a primary means of transportation, provided the value of the property is less than an indexed amount (i.e. car or motorbike); property held in trust for another person, such as a child’s bank account (Note that it is not enough that you consider the account to be for your children – the name on the account MUST have the words ‘in trust’ on it); life insurance and endowment insurance policies and proceeds thereof; retirement funds and pensions;  compensation from damages due to personal injury for pain and suffering only are an exempt asset.

Moreover, if you are earning an income that is more than the value of a threshold amount, you are required to make regular income contributions of 50 cents after every tax dollar above the indexed amount.

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.  

 

Share This Post

Share on facebook
Share on linkedin
Share on twitter
Share on email

Read more from our blog

Financial Aid(CERB) & the COVID-19 Crisis

What is the Canada Emergency Response Benefit (CERB)? This is a federal financial aid option to help business owners, employees, and self-employed get much-needed financial

Covid-19 and Flexibility for Taxpayers

The government of Canada is taking action in order to provide assistance and flexibility to Canadians facing hardship due to the Covid-19 virus. Not only