January 20th, 2009 by Questions
what do you keep or lose during bankruptcy?
Posted from: Ontario
January 21, 2009 at 11:38 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
In Ontario, certain things are exempt from seizure by a trustee in bankruptcy (i.e. these items you keep and are protected under Ontario law). The bankruptcy exemptions in Ontario include:
* $5,650 worth of personal possessions (clothing, jewelry, sports equipment, etc.);
* $5,650 worth of motor vehicles (cars, trucks, etc.);
* $11,300 worth of furnishings;
* $11,300 worth of tools of the trade (equipment that you use to earn a living); and
* Certain types of life insurance.
Technically, in an Ontario bankruptcy everything else that you own is seized by the trustee and sold to repay your creditors
The only other major exemption you should know about is RRSP’s. All RRSP’s are exempt under Federal Law except for contributions made in the last 12 months.
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