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vehicle and bankruptcy

I am getting a legal separation and am considering personal bankcruptcy. I was in an accident and totalled my car, but will receive $12.000 from the insurance. With this, I will purchase a `new to me` car. Will I be able to keep my car if I go the bankcruptcy route?

Posted from: New Brunswick

One Response to “vehicle and bankruptcy”

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

Not necessarily. There are limits to the property you get to keep, they are called exemptions. To be eligible to retain the vehicle .

In New Brunswick the rules read:

One motor vehicle having a realizable value of not more than six thousand five hundred dollars at the time the claim for exemption is made, or not more that any greater amount that may be prescribed, if the motor vehicle is required by the debtor in the course of or to retain employment or in the course of and necessary to the debtor’s trade, profession or occupation or for transportation to a place of employment where public transportation facilities are not reasonably available.

So if you can meet the above requirements then the vehicle is yours to keep.