August 13th, 2007 by Questions
I saw this term \’realizable assets\’ in one of your recent answers to a bankruptcy question … can you explain what this term means and give an example or two?
August 14, 2007 at 8:19 am, A licensed trustee said:
Sorry, we tend to use techinical terms without realizing that we’re speaking gibberish to most readers.
Your assets are the things that you own: house, car, furniture, RRSPs, etc.
Your realizable assets are the things that you own that may be seized and sold if you file bankruptcy.
For example: if you have equity in your home (if there would be money left for you after your house was sold) that equity is a realizable asset. If you file bankruptcy your trustee will ask you if you want to pay them an amount equal to your equity or if you’d prefer that your trustee sell your home.
Each province has its own list of what is and isn’t realizable – I suggest you contact a trustee in your area and ask them for the specific lst where you live.
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