Will someone take my assets when I go bankrupt in Ontario?
It is a myth that a person in bankruptcy loses their car and their household goods. Each province such as Ontario in Canada has legislation that determines the value of property a person is allowed to own without risk of it being taken to repay a debt. Bankruptcy law respects these provincial guidelines. In Ontario, household goods are exempt up to a resale value of $11,300, and personal items to a value of $5,650. If you would earn less than those amounts by selling your furniture, appliances, microwave, guitar, hockey skates, class ring, cellphone etc. in a home contents sale, then you can keep them in a bankruptcy. A single car valued at $5,650 is likewise exempt, although if you have two cars in your name you will have to repay the Trustee for the resale value of the second one, for your creditors. Your Trustee will generally allow the exemption on the car with the higher resale value.
There are other exemptions specific to farmers that may apply to specific circumstances that will be discussed with you by your licensed insolvency trustee.
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 bankruptcy in Ontario and debt for more than 25 years.