Is a car considered surplus income?
November 7th, 2011 by Questions
I’m considering filling for consumer proposal. I have a car (2009) Does that count as surplus? if so, how does it work?
One Response to “Is a car considered surplus income?”
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November 07, 2011 at 11:00 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
Having a car doesn’t really impact the filing of a consumer proposal, but it may be something that has to be considered. What is looked at is the value of the vehicle, the amount owing on the vehicle and the amount of the available exemption in your province.
If the equity in your vehicle exceeds the amount that is applicable in your province (and in Ontario it is $5650) then you may have to offer a little more in the proposal.
To know for sure what I would recommend is that you contact a local trustee, they are the only people eligible to file proposals in Canada, and schedule an initial meeting. There is no cost or obligation to this meeting and it is designed so the trustee can evaluate where you are at and explain what type of offer would need to be made to your creditors.