What is kept/lost if a bankruptcy is filed?
If we were to claim bankruptcy, what happens to all the baby and children`s things, like furniture, toys, stroller, high chairs…are these part of the $4000 we have to keep or is it seperate?
Most of these items were gifts from the grandparents and at the shower.
Posted from: British Columbia
When you file for bankruptcy there are certain exemptions that each debtor is permitted. The assets described would likely be considered part of your household furnishings and personal effects and most provinces provide a certain dollar amount of these assets that would be protected if a bankruptcy is filed. In BC you are permitted to claim as exempt up to $4,000 in household items. The one thing to keep in mind is that this $4,000 is not replacement value but liquidation or garage sale value. As a result most people find that very rarely do they loose any of these types of household items when a bankruptcy is filed.