Is it possible to keep two cars while in bankruptcy?
March 9th, 2006 by Questions
I need a car to commute to work in Vancouver (about an hour’s drive with no public transport available) and my wife needs her car at home in order to accomodate one of our children who is handicapped. Are there any exceptions to the rule in B.C. that says a bankrupt is allowed to keep only one car?
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March 10, 2006 at 10:32 am, Barton Goth, GCO Inc. Bankruptcy Trustees said:
It would be important for you to discuss this with a licensed trustee in B.C. as each jurisdiction is different. In Alberta the rules permit a certain amount of equity in a vehicle, so if one of the vehicles is leased, or has money owing against it that is equivalent to the resale vale of the vehicle, as long as the payments remain current you are able to keep that vehicle and then claim any equity in the other vehicle as exempt. Alternatively, if both cars are owned free and clear we have often claimed the more valuable of the two as exempt (up to the allowable exemption) and the remaining car can be kept if it is essentially purchased from the trustee (as on bankruptcy any non-exempt assets vest in the trustee and he is obliged to liquidate the vehicle).