Personal bankruptcy is a legal process, governed by federal law (the Bankruptcy & Insolvency Act). When you file an assignment in bankruptcy, a trustee is appointed. The trustee has two main jobs.
First, the trustee in bankruptcy takes your assets and sells them. For example, if you own a house with no mortgage, the trustee would sell the house, and use the money to repay your creditors (the people you owe money to).
If you file for personal bankruptcy in Brantford, Ontario, certain assets are exempt from seizure by the trustee, meaning the trustee will not take certain things if you go bankrupt.
If you file bankruptcy in Brantford you are allowed to keep the following:
- A motor vehicle, such as a car or truck, with no loans or liens against it, worth up to $5,650. Unless the car is old, an appraisal will be required to confirm the vehicle’s value.
- Household furniture worth up to $11,300;
- Personal belongings, such as clothes, jewelry and sports equipment worth up to $5,650, and
- Tools of the trade (items you use while working, such as a hammer if you are a carpenter) worth up to $11,300.
Second, the trustee then takes whatever money they recover, and distributes it to the creditors at the end of your bankruptcy.
In exchange, most of your debts are eliminated. (Certain debts such as child support and secured debts are not discharged in a bankruptcy. E-mail or call us at 519-770-4440 for more information).
Please read our article on What Happens When I go Bankrupt in Brantford? for more details.
