December 9th, 2009 by Questions

If you go bankruptcy and you owe about $40.000.00 on loans and credit but I have no assets except for a van that is worth about $6000.00 would I lose the van in the bankruptcy proceeding or not
thank you

Posted from: Ontario


One Response to “MR”

, A licensed trustee said:

In Ontario, you are allowed to keep a motor vehicle worht upto $5,650 if you file for bankruptcy (and you haven’t pledged the car as collateral on a loan). If you vehicle is worht more than the allowable amount you’;ll be required to “buy” it back if you want to keep it.

So, if you van is worth $6,000 and you file for bankruptcy, you’ll need to pay your trustee an additional $350 above an dbeyond any other amounts you may be required to pay ($6,000 – $5,650 = $350).

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