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Will I lose my home, car & business if I declare bankruptcy?

Will I lose my home, vehicle and business if I declare personal bankruptcy?

Posted from: Nova Scotia

One Response to “Will I lose my home, car & business if I declare bankruptcy?”

Jillian Taylor-Mancusi, Trustee | B.A. | C.I.R.P said...

When you file an Assignment in bankruptcy you sign over to the trustee everything you own, have a right to or an interest in. If there are exemptions allowed under Federal or Provincial legislation those exemptions will be recognized in bankruptcy. It is the responsibility of the trustee to get the maximum realization from the assets for the unsecured creditors. It should be noted that secured creditors with properly registered and executed documents will have priority to the rights of the trustee. Therefore, if your assets such as your home, vehicle and business are encumbered it may be there is insufficient equity to allow the trustee to dispose of the asset with a residual benefit to the unsecured creditors. In such a case the trustee will advise the secured creditor accordingly and not take any action against that asset. The assets are dealt with individually, while there may not be any equity in one asset, there may be equity in others.

Notwithstanding that the trustee may not have any interest in a particular asset, the secured creditor may have the right to repossess an asset if the payments are not kept up to date.

It is important to get the advice of a trustee who can analysis your particular situation and provide advice with regard to your assets and how the legislation in your province may apply to them.