Farm Assets And Bankruptcy

 Hello, Under provincial legislation in Manitoba there is a series of exemptions applicable to farmers. They include the following: ·All animals reasonably necessary for the proper and efficient conduct of a farmer’s agricultural operations for the next 12 months; ·All farm machinery, dairy utensils and farm equipment reasonably necessary for the proper and efficient conduct of a farmer’s agricultural operations for the next 12 months; ·One motor vehicle if required for the purpose of the agricultural operation; ·The farmland upon which the debtor or his family actually resides or which he cultivates, either wholly or in part, or which he actually uses for grazing or other purposes, where the area of the land is not more than 160 acres. If you are in bankruptcy and have equity in these assets or own them free and clear, the exemptions provided under provincial legislation prevent the bankruptcy estate from taking possession and liquidating these assets. These exemptions do not prevent a secured creditor from enforcing their security. However, if you are not behind in your payments it is likely that the secured creditor will allow you to continue with the payments and therefore you would not lose the farm asset(s). Exemption legislation varies by province. For more information contact an MNP Trustee in your area. Brad Milne Trustee in Bankruptcy Brandon, Manitoba