keeping car

November 13th, 2010 by Questions

Hi, if a husband and wife both file for bankruptcy, and have one car between them valued at approx. 10,000, can we keep car? It is only registered in husbands name, but both names are on the bill of sale and insurance?
Thankyou
Rose

Posted from: Alberta

Questions

One Response to “keeping car”



, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

This partially depends on whether or not there is a loan against the car and if you are current on that loan. But based on how you phrased things I will assume that there isn’t a loan.

So what happens is that in the province of Alberta you are entitled to a $5,000 exemption, per debtor, per vehicle.

Meaning that you are limited to 1 exemption per vehicle and not allowed to stack those exemptions (i.e. two people cannot each use their $5,000 exemption on the same vehicle and protect a $10,000 asset). Now this doesn’t mean that if a bankruptcy is filed you can’t keep the vehicle, it just means that to do so you would have to pay $5,000 into the bankruptcy estate over and above the cost of bankruptcy.

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