Vehicle Worth More Than Exempt Amount Can I Keep It

2010-08-23   minute read

Your vehicle is worth $8,500 and the amount you're allowed for a vehicle in a bankruptcy is $5,000 in BC (the amount may be different in other provinces).  If you're doing a bankruptcy, it's very likely that you could make an arrangement with your trustee to keep the vehicle and pay the difference (in your case, $3,500 into the bankruptcy over time).  It might be a good idea for you to get the vehicle appraised by a liquidator to ensure that you're not overestimating its value - it may save you more than the cost of the appraisal.  Alternatively, ask you trustee to give you a printout of the Black Book value. Under provincial law in BC, if a creditor seizes your vehicle (i.e., if you are not in bankruptcy and are being sued by a creditor), you would get the first $5,000 from the sale of the vehicle if a creditor seizes it.  A creditor must have a court judgment before they can do this. If you're doing a Consumer Proposal rather than a Bankruptcy, it's very likely that you will be able keep your vehicle if you wish to do so.  The terms of your proposal (i.e., what is agreed to between you and your creditors) will allow you to do this.  Your trustee will guide you in deciding what the terms of your proposal should be and will handle all communication between you and your creditors. Judy Scott - Trustee Port Moody - Burnaby - Maple Ridge British Columbia 604-949-2113 [email protected]

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