2010-08-23
The Trustee’s role in a bankruptcy is to realize on non-exempt assets, for the benefit of your creditors. In BC, you may claim up to $5,000 in equity in one motor vehicle (unless you are a maintenance debtor – i.e., you owe spousal or child support – in which case the exemption is only $2,000). If your vehicle is worth $8,500 and you may claim a $5,000 exemption, there is roughly $3,500 in non-exempt equity that must be realized by the Trustee There are two ways for the Trustee to realize on the non-exempt equity: 1) the Trustee takes possession of and sells the vehicle, returning to you the $5,000 that you are entitled to; or 2) you and/or a third party may pay the sum of $3,500 to the Trustee and the Trustee “releases” its interest in the vehicle (this is more common than the first option). Please note that other factors may be taken into consideration in calculating the equity (i.e., realization costs, insurance, etc.). A Trustee can give you further details based on your specific circumstances. Hope this answers your question. Feel free to contact me directly if you would like to discuss this further.
2021-03-09
Bankruptcy
Fear of losing needed or cherished assets is one of the most common reasons why people are hesitant to file a Bankruptcy. And a motor vehicle is understandably one of the assets potential bankrupts are most fearful of losing. Unfortunately, there isn’t a universally black or white answer to this question. Here’s why.
2016-03-28
Bankruptcy
Bankruptcy is a process that releases you from most of your indebtedness by handing over some of your property. In other words, bankruptcy lets you erase your debts and put an end to your indebtedness within a few months.
2012-08-01
Bankruptcy
Will I lose my car if I declare bankruptcy?
