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If you have unsecured debt of under $10,000 and live in the Province of Ontario filing bankruptcy may not be the best option for you. We suggest you contact the Office of the Superintendent of Bankruptcy at 416-973-6441 to discuss your options, or you can visit their website here.

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Vehicles and bankruptcy

My wife and I are considering bankruptcy but want to know if I am a realtor so I need a car and she is a mortgage agent with 3 kids and one on the way do we have to give up our cars she has a van that is financed with about $7,000 and a value of $5,000 and the other car is owned but we bought it for $200 and is about 15 yrs old, do we have to give over the vehicles?

Posted from: Ontario

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One Response to “Vehicles and bankruptcy”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

If you go bankrupt in Ontario you are allowed to keep one motor vehicle worth less than $5,650. So you will have no problem claiming the older vehicle as exempt and there will be no impact on it.

As for your financed car, this car has no equity in it as the value is less than the amount of the loan. In your situation the car is fully financed and therefore is largely dealt with outside of the bankruptcy. If you choose to keep this car as well you will have no problem from the bankruptcy perspective, but will have to arrange with the lender to continue making payments as originally contracted.