Free Consultation

Will my car now be considered an asset?

I am being discharged from my bankruptcy in December. I have a vehicle that was not included in my bankruptcy that I was making payments on. My boyfriend sold his house and paid off my car for me. Will my car now be considered an asset? Can it affect my bankruptcy?

Posted from: Ontario

One Response to “Will my car now be considered an asset?”

Jillian Taylor-Mancusi, Trustee | B.A. | C.I.R.P said...

The motor vehicle presumably had no equity at the time of bankruptcy and in itself is not an after acquired asset notwithstanding that it was paid off early. However, the payment by your boyfriend constitutes a gift. Section 67(1) (C) of the Bankruptcy and Insolvency Act states
“All property wherever situated of the bankrupt at the date of bankruptcy, or that may be acquired by or devolve on the bankrupt before their discharge…” is an asset of the estate.

This means that the gift given by your boyfriend should be paid over to the trustee.