What Can you keep?
If you are considering filing for Bankruptcy, you may be wondering what assets may be exempt. Everyone’s situation is different, and it will also depend on if you are going to file for bankruptcy or file a consumer proposal. With each, there are different rules and all options are considered when you come in for a free consultation with David Sklar and associates.
With bankruptcy, depending on your financial situation, some assets may be exempt.
Asset exemptions may include:
- Prime residence items – furniture, utensils, equipment, food and fuel not exceeding the prescribed amount or, if no amount is prescribed, up to $14,180 in value.
- One automobile – not above the prescribed amount or, if no amount is prescribed, up to $$7,117 in value.
- Clothing – (described as necessary and ordinary) no limit.
- Tools (those ordinarily used by you to earn your living) not above the prescribed amount or, if no amount is prescribed, up to $$14,405 in value. Note: farming tools are treated differently.
Differences Between Bankruptcy vs Consumer Proposal
There are differences between a bankruptcy and a consumer proposal that you will need to take into consideration when looking into dealing with your debt. For example, with a Personal Bankruptcy – the person filing the bankruptcy is permitted to keep certain assets that are exempted by the Ontario Execution Act – but is required in certain situations to submit all other assets for settlement. In a Consumer Proposal – the person filing the Proposal is able to keep all their assets (as long as they continue to make any required payments – i.e. mortgage payment, car loans etc.).
If you are facing financial issues and have surmounting debt, call David Sklar & Associates for a free consultation. Find out all the available options that are available for you, and help make the best decision for your current financial situation.