Will I Be Left with Nothing?
At David Sklar & Associates, Licensed Insolvency Trustee, we understand the fear that many people have regarding bankruptcy.
It is important to know that bankruptcy in Ontario tries to be fair and leave the bankrupt with enough assets to make starting over possible.
We work with our clients to help them avoid bankruptcy. In fact, over 50% of the people we help get out of debt, use consumer proposals. However, there are times when bankruptcy is the best choice.
What Can You Keep?
The Ontario Execution Act and the federal Bankruptcy and Insolvency Act, normally enable a person who files bankruptcy to keep some assets such as:
- RRSPs (except for contributions made in the previous 12 months)
- RRIFs (except for contributions made in the previous 12 months)
- NO LIMIT to the amount of clothing
- Up to $13,150.00 worth of prime residence items such as appliances, furniture, kitchen ware, food, etc
- One vehicle valued up to $6,600.00
- Up to $11,300 worth of tools used in earning a living
Secured loans, such as mortgages, cannot be included in bankruptcies. However, if there is any equity in the secured assets, then it may be necessary to disburse that equity to the unsecured creditors.
In some situations,it may be possible for a bankrupt to keep their home. It is essential to speak with a trustee to know what your situation is, before taking any action.
Not all types of unsecured debt can be included in a bankruptcy. Your trustee will advise you on this and other matters.
Find Out More in the Toronto Area
In Ontario, only licensed trustees in bankruptcy can file and administer bankruptcies.
If you live in the greater Toronto area, are in serious financial trouble and would like to speak with one of the licensed professionals at David Sklar & Associates – call us a 416-498-9200 to book a FREE consultation. We will review your finances in detail and discuss all your options for getting out of debt.