Why does he get to keep his vehicle?
January 15th, 2015 by Questions
A relative by marriage filed for bankruptcy 2012. Lied to the trustees about debts and is suppose to go to bankruptcy court. In 2013 he received a new vehicle as a buyout from company he retired from as well as a cash settlement. Why does he still have the vehicle? I told the trustee and he said prove to me the vehicle is his, because i can’t go on the property and seize it. Is this so?
Posted from: Ontario
One Response to “Why does he get to keep his vehicle?”
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January 15, 2015 at 10:05 am, Jillian Taylor-Mancusi, Trustee | B.A. | C.I.R.P said:
It is common in personal bankruptcies for people on the outside looking at a situation to wonder why people keep their house, their car or other assets in a bankruptcy. Most of the time these situations are easily explained when one knows the details of the circumstances. Houses are often mortgaged with little or no realizable equity, often times if there is equity it could belong to a spouse or other relative. While most provinces have exemptions for motor vehicles under certain circumstances, there may also be leases or chattel mortgages which means that the trustee does not have any interest in the vehicle.
In cases where, through dishonesty, a bankrupt does not disclose assets that would otherwise be assets of the estate, a complaint to the Office of the Superintendent of Bankruptcy’s office will usual result in the matter being reviewed.