Can I Keep My Assets? Surrey Bankruptcy Exemptions
What Can I keep if I go bankrupt in Surrey?
While it might sound too good to be true you can keep some of your possessions when you go bankrupt in Surrey, known as the bankruptcy exemptions.
These assets are called bankruptcy exemptions, because they are exempt from seizure by your Licensed Insolvency Trustee.
Surrey Bankruptcy Exempt Assets
Most Surrey bankruptcy exemptions that are permitted by law are set out by the Civil Enforcement Act of Surrey.
This piece of legislation provides you the ability to protect the following assets:
- Food required by you and your dependents during the next 12 months.
- Clothing up to a value of $4, 000.
- Household furnishings and appliances to a value of $4, 000.
- One motor vehicle not exceeding a value of $5,000 of equity (equity is the value of the vehicle less any loans against the vehicle).
- All Medical and dental aids required by you and your dependents.
- Equity in your principal residence (including a mobile home) up to a maximum of $40,000 per household divided by your share of ownership (as calculating the allowable amount of equity in a residence can be tricky I recommend you contact a local trustee to discuss the details).
- Tools of the trade up to a value of $10,000. This category is used to capture any property that is required for you to earn income (i.e., tools, equipment etc.)
- Registered Retirement Savings Plans (RRSP’s), Registered Retirement Income Funds (RRIF’s), Registered Disability Savings Plans (RDSP) and other similar registered investments.
As you can see you do not lose everything when you file for bankruptcy in Surrey.
In fact, most debtors filing for bankruptcy in Surrey, are able to keep a wide variety of property.
If you would like to speak with a professional about how the Surrey bankruptcy exemptions would impact your situation the best thing for you to do is to schedule a time to review your assets with a licensed Surrey Bankruptcy Trustee.
They will be able to advise you what assets you can keep should you file for bankruptcy.
Why are some assets exempt?
Bankruptcy is a process that allows an honest but unfortunate debtor to get a fresh financial start.
However, to achieve the fresh financial start, you need to keep some dignity and some essential assets as a starting point for you and your family to rebuild your financial lives.
These essential assets are your bankruptcy exemptions, and are defined in the law.
What about my bank account?
Your bank account is not an exempt asset in bankruptcy.
However, you should carefully arrange your banking in bankruptcy, to ensure that no inappropriate payments go to your creditors.
You can keep your dignity, but exemptions are complicated
If you file for bankruptcy, you can keep some assets that are essential for you to live your life, provide for your family, and make a living.
Exactly what you can keep depends on your personal circumstances.
Bankruptcy exemption rules are complicated, and change from time to time. Professional advice is essential.
You could keep all your assets (and avoid the matter of exemptions) by filing a consumer proposal – a negotiated settlement between you and your creditors.
Although this option costs more than a bankruptcy, it may help reduce your feelings of guilt.
For more details on bankruptcy exemptions in Surrey and for answers to your other questions about bankruptcy and consumer proposals, please contact our personal Licensed Insolvency Trustee in your area and arrange for an initial consultation, free of charge.
This federally-licensed professional will examine all the circumstances of your case and advise you on the options available to you.