Bankruptcy and farm business
August 20th, 2006 by Questions
I am considering personal bankruptcy and business bankruptcy – due to substantial business losses from our retail store. The business bankruptcy to wipe out the business debt and then the personal bankruptcy to stop creditors from suing us personally as we don\’t have enought assets to clear up the debt.
However – we have a small hobby farm that is revenue generating – and will provide a revenue for me once the store is closed.
Will the assets of the hobby farm be seized to pay the personal debt. in particular our truck – as it is valued at approx $20,000. (which is over the allowable limit) but we use it to generate income – as we deliver hay, livestock etc for the farm. We are in ontario and there is an exemption for farm equipment of about $28,000. can the truck be considered farm equipment? Our parents purchased the truck for us – as we were having financial difficulties – we have a promissory note with them. Can we just give them the truck back in payment of the note??
Also – my kids each own a horse – will they be seized as well??