What happens to my car in a bankruptcy?
Bankruptcy in Ontario and your car. A vehicle that is used as a primary means of transportation and has a value not exceeding a prescribed limit (Ontario $5,650) may be retained during bankruptcy in Ontario. The vehicle can be a car or a motorbike. However, if the value of the vehicle is more than the prescribed amount, the Trustee can/may take your vehicle and sell it or you may have the option to pay the difference to the Trustee. If the Licensed Insolvency Trustee sells your vehicle they will give you back the value of the prescribed amount and retain the balance for your creditors. If two bankrupts own the vehicle, the relevant value is twice the prescribed amount.
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 in Ontario for more than 25 years.