When is a car not a car under the Bankrupcy laws

September 28th, 2005 by Questions

I understand from reading this blog that in most provinces you are allowed to hold onto ONE car ( as long as its value is below the exempt level – or that you are willing to pay the appraised difference between the market value and the exemption level ).

But what happens when a person has one \’functional\’ car worth say $2000 and also holds title to two \’parts\’ cars or junkers. Technically they hold title to three cars… and yet only one of the titled cars is actually a car in the functional sense ? Does the bankrupt person have to hand over their two \’junkers\’ and keep the one functional car ? Or does the Trustee have some leeway in his/her determination about what constitutes a car for the purposes of the bankruptcy ?



One Response to “When is a car not a car under the Bankrupcy laws”

, Barton Goth, GCO Inc. Bankruptcy Trustees said:

In our office, we list all the cars on the bankruptcy documents, but if two of them are ‘junkers’ we usually find that it would cost more to tow the car than we could sell for it, so the simply are left in your possession. We then claim the functional car as exempt and the other two as non-exempt.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)