Vehicles in proposal or bankruptcy
April 2nd, 2007 by Questions
My husband and I are separated – do we both get to keep a vehicle valued at $5650 if living in Ontario??
My vehicle\’s value is under $5000 – so I don\’t have to worry – but my husbands is approx $15,000.00 if he chooses to keep the vehicle – will he have to buy back the whole amount – or will he buy back $15,000. less his exemption of $5650. for a total of $9350.00??
Before we proceed – is there somewhere that we can find values for vehicles so that we are a little more prepared going into a proposal??
thanks
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April 05, 2007 at 12:50 pm, A licensed trustee said:
So, you are each allowed one vehicle registered in your name worth up to $5,650. (Check to make sure the cars have been registered separately – many couples only put them in one name and that will cause some problems).
If your car is worth more than the exemption (like your spouse’s car) then you are required to pay the excess over the threshold. In your example, if would be the $9350 you mentioned.
If you want a general idea of what your car is worth go to one of the car selling sites on the web – there are dozens – and look up your make, model and year. You can discount that number 25% to get an estimate of your car’s wholesale or trade-in value.
If you contact a trustee in your area, they will be able to tell you their requirements regarding appraisals for used vehicles.