Buying Back Vehicle From Trustee
My only vehicle is worth about $7K and I believe that the Ontario vehicle bankruptcy exemption is $5,650. I have no other assets or no surplus income. When I go bankrupt can I pay the trustee the $1,350 difference over time so I can retain the vehicle? If this is the only money the trustee collects, will it be used to offset his fees before any disbursement to creditors?
Posted from: Ontario
You are correct, if you file for bankruptcy and have an asset that is worth more than the allowable exemption, you should be able to arrange with the trustee to pay the difference in as part of your bankruptcy. But you need to confirm that with your trustee in advance just to make sure you are both on the same page. As for your payments, the money regarding the vehicle would be over and above the minimum cost that is set by the trustee. So if the minimum cost was $1,800 and you had to pay an additional $1,350 in relation to the vehicle, then you would have to pay a total of $3,150 to get a discharge.